玲珑轮胎：三季度净利润同比增长97%，欧洲工厂有望迎来上行周期

Investment Rating - The report maintains an "Outperform the Market" rating for Linglong Tire (601966.SH) [1][3][19] Core Views - Linglong Tire's net profit for Q3 2024 increased by 97% year-on-year, driven by a combination of domestic and international demand [1][4] - The company is expected to benefit from the ramp-up of its European factory, which is anticipated to enter an upward cycle [1][19] - Linglong's comprehensive strategy in capacity, matching, and retail is expected to enhance its competitive edge and ensure performance growth [19][20] Financial Performance Summary - For the first three quarters of 2024, Linglong Tire achieved operating revenue of 15.95 billion yuan, a year-on-year increase of 9.8%, and a net profit attributable to shareholders of 1.712 billion yuan, up 78.4% [1][4] - In Q3 2024, the company reported revenue of 5.57 billion yuan, a year-on-year increase of 5.2%, and a net profit of 790 million yuan, reflecting a 97.3% increase year-on-year [1][4] - The gross profit margin for Q3 2024 was 27.4%, up 4.5 percentage points year-on-year, indicating strong profitability despite rising raw material costs [1][8] Capacity and Production Strategy - Linglong Tire is focusing on expanding its production capacity, particularly in Europe and Thailand, while also enhancing domestic production in regions like Changchun, Hubei, and Anhui [1][19] - The company is implementing a "7+5" global strategy to optimize its production and service capabilities [11][19] Retail and Market Positioning - The company is advancing its retail strategy through initiatives like the establishment of Linglong Car Service Stations and partnerships with platforms like JD.com to enhance its market presence [13][20] - Linglong Tire has maintained its position as the leading supplier in the domestic tire matching market, with significant projects in both commercial and passenger vehicle segments [13][19] Future Earnings Forecast - The report projects net profits of 2.21 billion yuan, 2.90 billion yuan, and 3.38 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding EPS of 1.50 yuan, 1.97 yuan, and 2.29 yuan [19][20]