GS(SH:601500) Guohai Securities·2024-11-10 13:33Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The report highlights a significant increase in tire production and sales, indicating strong long-term growth potential for the company [2][4] - The company reported a revenue of 4.988 billion yuan for the first three quarters of 2024, a year-on-year increase of 35.56%, and a net profit of 380 million yuan, up 139.49% year-on-year [3][4] - The report emphasizes the company's ongoing international expansion with projects in Cambodia and Thailand, which are expected to enhance its competitive edge in the global market [4][5] Financial Performance Summary - For Q3 2024, the company achieved a revenue of 1.920 billion yuan, a year-on-year increase of 33.45%, but a net profit of 93.48 million yuan, which represents a decline of 7.16% year-on-year [3][4] - The gross profit margin for Q3 2024 was 15.05%, a decrease of 0.88 percentage points year-on-year, while the net profit margin was 4.87%, down 2.13 percentage points year-on-year [3][4] - The company’s operating cash flow for Q3 2024 was 155 million yuan, reflecting a decrease compared to previous periods [3][4] Production and Sales Data - In Q3 2024, the company produced 5.7025 million tires, a quarter-on-quarter increase of 21.74%, and sold 5.518 million tires, a quarter-on-quarter increase of 27.37% [4] - The report notes that the company’s financial expenses increased significantly, impacting overall performance [4] Future Earnings Forecast - The company is projected to achieve revenues of 7.163 billion yuan, 9.508 billion yuan, and 11.104 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 537 million yuan, 969 million yuan, and 1.296 billion yuan [7][8] - The report anticipates a significant growth rate in net profit, particularly in 2024, with a forecasted increase of 148% [8]