TRIANGLE TYRE(SH:601163) Guohai Securities·2025-09-08 08:02Investment Rating - The investment rating for the company is "Buy" (maintained) [1][10]. Core Views - The company has experienced a significant improvement in quarterly net profit in Q2 2025, despite a year-on-year decline in tire sales and net profit in the first half of 2025 [4][10]. - The company is focusing on enhancing its market competitiveness through product performance in niche markets and strengthening partnerships with customers [5][10]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved operating revenue of 4.778 billion yuan, a year-on-year decrease of 4.50%, primarily due to insufficient domestic replacement market demand and increased competition [2][3]. - The company produced 12.1461 million tires in the first half of 2025, a year-on-year increase of 0.95%, while tire sales were 11.1203 million, a year-on-year decrease of 9.06% [2][3]. - The net profit attributable to shareholders in the first half of 2025 was 396 million yuan, a year-on-year decline of 35.31% [3]. Quarterly Performance - In Q2 2025, the company achieved operating revenue of 2.534 billion yuan, a year-on-year decrease of 3.22% but a quarter-on-quarter increase of 12.89% [4]. - The net profit attributable to shareholders for Q2 2025 was 230 million yuan, a year-on-year decline of 27.71% but a quarter-on-quarter increase of 38.45% [4]. Market Strategy - The company is deepening its focus on niche markets and enhancing product performance, with stable sales in the domestic commercial vehicle tire market and over 15% growth in domestic passenger car tire sales [5][10]. - The company is actively developing high-performance and differentiated products, including new models for electric vehicles and specialized tires for extreme conditions [8][10]. Forecasts - The company is projected to achieve operating revenues of 10.359 billion yuan, 11.326 billion yuan, and 12.066 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 1.038 billion yuan, 1.146 billion yuan, and 1.246 billion yuan [9][10].