AEOLUS(SH:600469) Zhongyuan Securities·2025-09-09 13:24Investment Rating - The report assigns an "Accumulate" rating to the company, indicating a potential increase of 5% to 15% relative to the CSI 300 index over the next six months [15]. Core Views - The company reported a revenue of 3.518 billion yuan for the first half of 2025, representing a year-on-year growth of 11.71%. However, the net profit attributable to shareholders decreased by 55.38% to 103 million yuan, with a non-recurring net profit of 92 million yuan, down 57% year-on-year [3][5]. - The company is a leader in the truck tire and non-road tire market in China, with a comprehensive range of products sold in over 140 countries. The company has implemented refined operational strategies to enhance product structure and optimize market adjustments, leading to growth in both domestic and international sales [3][5]. - The average selling price of tires increased by 0.8% to 1,157 yuan per tire, while tire production rose by 7% to 2.9966 million units, and sales increased by 10.25% to 2.9532 million units [3][5]. - The company's gross margin for the first half of 2025 was 14.90%, down 3.89 percentage points year-on-year, primarily due to rising raw material costs, which increased by 6.23% compared to the previous year [3][5]. - In the second quarter of 2025, tire production and sales showed positive growth, with production at 1.5432 million units (up 1.78% year-on-year) and sales at 1.586 million units (up 11.67% year-on-year) [3][5]. - The company is making significant progress in its giant tire project, which is expected to provide long-term growth momentum. The project has completed all pre-construction approvals and is now in the substantial construction phase [5][6]. - The earnings per share (EPS) for 2025 and 2026 are projected to be 0.42 yuan and 0.62 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 15.06 and 10.13 based on the closing price of 6.25 yuan on September 8 [5][6].