Linglong Tyre(SH:601966) ZHONGTAI SECURITIES·2025-09-04 06:18Investment Rating - The investment rating for Linglong Tire is "Buy" (maintained) [2][8] Core Views - The report highlights that Linglong Tire achieved a revenue of 11.81 billion yuan in H1 2025, representing a year-on-year increase of 13.8%, while the net profit attributable to shareholders was 850 million yuan, down 7.7% year-on-year. In Q2 2025, the company reported a revenue of 6.12 billion yuan, up 14.6% year-on-year, with a net profit of 510 million yuan, an increase of 6.2% year-on-year [5][6] - The report anticipates that the company's performance will improve in Q3 2025 due to external factors gradually improving and the ramp-up of production at the Serbia plant [6] Summary by Sections Financial Performance - For 2023A, the company is projected to have a revenue of 20.165 billion yuan, with a year-on-year growth rate of 19%. The net profit attributable to shareholders is expected to be 1.391 billion yuan, reflecting a significant year-on-year growth of 377% [2] - The forecast for 2024A includes a revenue of 22.058 billion yuan, with a growth rate of 9%, and a net profit of 1.752 billion yuan, with a growth rate of 26% [2] - The company expects to achieve revenues of 25.336 billion yuan, 27.882 billion yuan, and 30.319 billion yuan for 2025E, 2026E, and 2027E respectively, with corresponding net profits of 2.016 billion yuan, 2.402 billion yuan, and 2.756 billion yuan [2][7] Market Position and Strategy - Linglong Tire's Q2 2025 performance was bolstered by exchange rate gains, and the company is expected to see continued growth in Q3 due to improved external conditions and increased production capacity in Serbia [6] - The company has been expanding its global partnerships and retail collaborations, which are expected to enhance its market presence and operational efficiency [6][7] Valuation Metrics - The report provides a P/E ratio forecast of 16.0 for 2023A, decreasing to 11.1 for 2025E, indicating an improving valuation as earnings grow [2] - The P/B ratio is projected to remain stable around 1.0 for 2024A and 2025E, suggesting a solid valuation relative to book value [2]