Linglong Tyre(SH:601966) Guoxin Securities·2025-09-04 14:31Investment Rating - The report maintains an "Outperform the Market" rating for Linglong Tire [5][36][37] Core Views - Linglong Tire's revenue for the first half of 2025 reached 11.81 billion yuan, a year-on-year increase of 13.8%, while the net profit attributable to shareholders was 850 million yuan, a decrease of 7.7% [1][8] - The company is expected to benefit from the ramp-up of its overseas factories, particularly in Serbia, which has shown significant revenue growth [2][19] - The long-term growth strategy includes a focus on capacity expansion, high-end product penetration, and retail development, which are anticipated to enhance the company's market share [3][36] Summary by Sections Financial Performance - In Q2 2025, Linglong Tire's revenue was 6.12 billion yuan, with a year-on-year increase of 14.6% and a quarter-on-quarter increase of 7.3% [1][8] - The gross profit margin for Q2 2025 was 16.0%, down 6.1 percentage points year-on-year, primarily due to rising raw material costs and tariffs [2][19] Capacity and Production - The Serbia factory's revenue in H1 2025 was 120 million yuan, a year-on-year increase of 148.1%, indicating strong growth potential [2][19] - The company plans to establish a third overseas base in Brazil, further expanding its global footprint [2][19] Strategic Initiatives - Linglong Tire is implementing a "7+5" global strategy, focusing on seven domestic bases and five overseas bases to enhance its competitive edge [3][19] - The company is actively pursuing high-end market penetration and has established partnerships with major automotive manufacturers, including BMW and BYD [3][36][24] Retail and Brand Development - The launch of the "Linglong Car Maintenance Station" and the new retail strategy 3.0 aims to enhance customer engagement and sales channels [25][36] - Linglong's brand value reached 98.137 billion yuan in 2024, reflecting strong market recognition and growth potential [30][36]