Linglong Tyre(SH:601966) Changjiang Securities·2025-11-16 23:30Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company reported a revenue of 18.16 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 13.9%. However, the net profit attributable to shareholders decreased by 31.8% year-on-year to 1.17 billion yuan [5][12]. - In Q3 alone, the company achieved a revenue of 6.35 billion yuan, which is a 14.0% increase year-on-year and a 3.8% increase quarter-on-quarter. The net profit for Q3 was 310 million yuan, down 60.2% year-on-year and 39.1% quarter-on-quarter [5][12]. - The company is a leading player in the domestic tire industry, with a strong focus on R&D and quality maintenance. The implementation of the "7+5" strategy is optimizing its global industrial layout [12]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a total revenue of 18.16 billion yuan, with a net profit of 1.17 billion yuan and a net profit excluding non-recurring items of 1.02 billion yuan [5][12]. - The overall gross margin for the company was 16.4%, a decrease of 8.0 percentage points year-on-year, primarily due to rising raw material prices and fluctuations in overseas tariff policies [12]. Sales and Production - In Q3, the company produced 23.896 million tires, a 4.5% increase quarter-on-quarter, and sold 23.096 million tires, a 0.5% increase quarter-on-quarter. The average revenue per tire in Q3 was 274.9 yuan, reflecting an increase of 8.8 yuan [12]. Cost Management - The pressure from costs is gradually decreasing, with the procurement costs of key raw materials dropping by 7.4% quarter-on-quarter and 8.5% year-on-year. The gross margin for Q3 was 18.0%, showing a slight improvement [12]. Strategic Developments - The company is advancing its global strategy with the establishment of a new production base in Brazil, which is expected to generate annual sales revenue of 1.06 billion USD (approximately 7.76 billion yuan) once fully operational [12]. - The company is also enhancing its global supply chain, achieving a revenue of 5.93 billion yuan from global supply channels in 2024, a year-on-year increase of 5.9% [12]. Future Outlook - The company expects net profits for 2025, 2026, and 2027 to be 1.64 billion yuan, 2.00 billion yuan, and 2.79 billion yuan, respectively, indicating a positive growth trajectory [12].