TRIANGLE TYRE(SH:601163) Guohai Securities·2024-11-02 15:30Investment Rating - The report maintains a "Buy" rating for the company [2][21]. Core Views - The company reported a decline in net profit for Q3 2024, primarily due to rising raw material prices and increased costs. The single-quarter net profit was 2.72 billion yuan, down 39.59% year-on-year and 14.59% quarter-on-quarter [3][21]. - The company continues to optimize its product structure, enhancing competitiveness in the tire market. New product developments include ultra-low rolling resistance tires and specialized products for electric vehicles [6][21]. - The company has a strong commitment to shareholder returns, with a cash dividend of 536 million yuan for 2023, representing 38.39% of the net profit, an increase of 8.02 percentage points from the previous year [7][21]. Financial Performance Summary - For the first three quarters of 2024, the company achieved operating revenue of 7.612 billion yuan, a year-on-year decrease of 3.28%. The net profit attributable to shareholders was 884 million yuan, down 16.44% year-on-year [3][21]. - The operating cash flow for the first three quarters was 765 million yuan, a significant decline of 41.73% year-on-year [3][21]. - The company’s sales gross margin for Q3 2024 was 16.72%, down 7.56 percentage points year-on-year, while the net profit margin was 10.41%, down 6.40 percentage points year-on-year [3][21]. Earnings Forecast - The company is projected to achieve operating revenues of 10.359 billion yuan, 11.326 billion yuan, and 12.066 billion yuan for 2024, 2025, and 2026, respectively. The net profit attributable to shareholders is expected to be 1.169 billion yuan, 1.275 billion yuan, and 1.370 billion yuan for the same years [21][8]. - The corresponding price-to-earnings (PE) ratios are forecasted to be 9.77, 8.96, and 8.34 for 2024, 2025, and 2026, respectively [21][8].