Linglong Tyre(SH:601966) Guohai Securities·2025-09-08 14:33Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has seen a significant improvement in its net profit for Q2 2025, with a year-on-year increase of 6.11% and a quarter-on-quarter increase of 50.89% [5] - The company's tire sales volume has increased, leading to a 13.80% year-on-year increase in revenue for the first half of 2025, amounting to 11.812 billion yuan [2][3] - The company maintains a leading position in the domestic tire market, with over 20% year-on-year growth in global matching sales in the first half of 2025 [9] Summary by Sections Financial Performance - In the first half of 2025, the company achieved a net profit of 854 million yuan, a decrease of 7.66% year-on-year, with a net profit margin of 7.23% [3] - The sales gross margin for the first half of 2025 was 15.50%, down 7.22 percentage points year-on-year [3] - For Q2 2025, the company reported revenue of 6.115 billion yuan, a year-on-year increase of 14.63% and a quarter-on-quarter increase of 7.34% [4] Sales and Production Data - In the first half of 2025, the company produced 45.8922 million tires, a year-on-year increase of 5.77%, and sold 44.3862 million tires, a year-on-year increase of 11.23% [2] - The average price per tire in Q2 2025 was 264.82 yuan, reflecting a year-on-year increase of 5.24% [4] Market Position and Strategy - The company has established partnerships with over 70 global OEMs, providing services across major automotive markets including China, Germany, Europe, the US, and Japan [9] - The company is accelerating its global "7+5" strategy, planning to establish a third base in Brazil with an investment of approximately 1.193 billion USD [9] Earnings Forecast - The company is projected to achieve revenues of 24.673 billion yuan in 2025, with a net profit of 1.952 billion yuan, corresponding to a PE ratio of 12 [11][14]