GTC(SZ:000589)2025-12-10 08:45Investment Rating - The report assigns a "Buy" rating to Guizhou Tire, with a target price of 6.60 CNY based on a 12x PE for 2026 [3]. Core Insights - Guizhou Tire's net profit attributable to shareholders increased by 50.55% year-on-year for the first three quarters of 2025, reaching 201 million CNY, while total revenue was 2.763 billion CNY, a 3.54% increase [1]. - The company is advancing its third phase of production in Vietnam and plans to establish a second overseas production base in Morocco to enhance its international competitiveness [1][4]. - A three-year shareholder return plan has been established, committing to distribute at least 30% of the net profit attributable to shareholders as cash dividends annually, provided certain conditions are met [4]. Financial Data and Forecasts - The projected total revenue for Guizhou Tire is expected to grow from 10.691 billion CNY in 2024 to 16.290 billion CNY in 2027, reflecting a compound annual growth rate (CAGR) of approximately 7.9% [4]. - The net profit attributable to shareholders is forecasted to be 612 million CNY in 2025, with a significant increase to 851 million CNY in 2026, representing a 39% growth [4]. - The company anticipates a diluted earnings per share (EPS) of 0.39 CNY in 2025, increasing to 0.55 CNY in 2026 [4][7].