Linglong Tyre(SH:601966) Caixin Securities·2025-05-06 06:23Investment Rating - The report maintains a "Buy" rating for Linglong Tire (601966.SH) [6] Core Insights - Linglong Tire's revenue for 2024 is projected to be CNY 220.58 billion, representing a year-on-year increase of 9.39%, with a net profit of CNY 17.52 billion, up 26.01% year-on-year [6] - The company continues to experience strong sales growth, with tire sales volume reaching 85.45 million units in 2024, a 9.57% increase from the previous year [6][7] - Linglong Tire is expanding its global footprint with a new production base planned in Brazil, which will require an investment of CNY 8.71 billion [6] Financial Projections - Revenue and net profit forecasts for Linglong Tire from 2025 to 2027 are as follows: - 2025: Revenue of CNY 240.20 billion, net profit of CNY 20.21 billion - 2026: Revenue of CNY 256.85 billion, net profit of CNY 22.86 billion - 2027: Revenue of CNY 282.28 billion, net profit of CNY 25.23 billion [6][7] - Earnings per share (EPS) is expected to grow from CNY 1.20 in 2024 to CNY 1.72 in 2027 [6][7] Market Position and Strategy - The tire market in China is experiencing robust growth, with total production exceeding 1.18 billion units in 2024, a 9.2% increase from 2023 [6] - Linglong Tire's strategy includes a "7+5" layout, focusing on seven domestic bases and five overseas bases to enhance its competitive position [6] - The company has established a presence in 173 countries, supplying tires to over 60 major manufacturers [6]