Linglong Tyre(SH:601966) Western Securities·2025-09-03 02:23Investment Rating - The investment rating for the company is "Buy" [5][3]. Core Views - The company reported a revenue of 11.812 billion yuan for the first half of 2025, representing a year-on-year increase of 13.80%, while the net profit attributable to shareholders decreased by 7.66% to 854 million yuan [1][5]. - In Q2 2025, the company achieved a revenue of 6.115 billion yuan, with a year-on-year increase of 14.63% and a quarter-on-quarter increase of 7.34%. The net profit attributable to shareholders was 514 million yuan, showing a year-on-year increase of 6.11% and a quarter-on-quarter increase of 50.88% [1][5]. - The company is expanding its global footprint by investing 1.193 billion USD in a new production base in Brazil, which is expected to generate annual revenue of 1.063 billion USD and a net profit of 166 million USD upon reaching full capacity [2][3]. Summary by Sections Financial Performance - For H1 2025, the overall gross margin and net profit margin were 15.50% and 7.23%, respectively, with a year-on-year decrease of 7.23 and 1.68 percentage points [1]. - In Q2 2025, the gross margin was 16.04%, showing a year-on-year decrease of 6.02% but a quarter-on-quarter increase of 1.12% [1]. - The tire revenue in Q2 2025 was 6.085 billion yuan, with a year-on-year increase of 15.58% [1][2]. Production and Sales - The tire production in Q2 2025 was 22.8636 million units, with a year-on-year increase of 4.70% and a sales volume of 22.9766 million units, reflecting a year-on-year increase of 9.82% [2]. - The average price per tire was 264.82 yuan, with a year-on-year increase of 5.24% [2]. Future Projections - The company is projected to achieve net profits of 1.667 billion yuan, 2.148 billion yuan, and 2.752 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 13.5, 10.5, and 8.2 [3][4].