2023年归母净利润同比增长62.3-77.3%

Investment Rating - The report assigns an "OUTPERFORM" rating to Qingdao Sentury Tire with a target price of RMB 43.52 [2][4][12]. Core Insights - The company expects a year-on-year increase in net profit attributable to shareholders of 62.33%-77.31% for 2023, projecting a net profit of RMB 1.30-1.42 billion [3][12]. - The recurring net profit is anticipated to grow by 40.73%-54.24%, reaching RMB 1.25-1.37 billion [3][12]. - The fourth quarter of 2023 is projected to see a significant increase in net profit, with estimates ranging from RMB 0.31-0.43 billion, reflecting a year-on-year surge of 121%-207% [3][12]. - The company's high-quality tires are in high demand in Europe and America, leading to a supply shortage, while the domestic market shows signs of recovery [3][12]. - The Thai subsidiary's tax rate has been significantly reduced to 1.24% from 17.06%, enhancing its competitiveness and profitability in the U.S. market [3][12]. Financial Projections - For 2023, the company is expected to achieve total revenue of RMB 9.21 billion, with a net profit of RMB 1.37 billion [5][9]. - The projected revenue for 2024 and 2025 is RMB 11.48 billion and RMB 13.46 billion, respectively, with net profits of RMB 1.89 billion and RMB 2.21 billion [5][9]. - The gross margin is expected to stabilize at around 23% from 2023 to 2025 [5][9]. Strategic Developments - The company plans to invest USD 193.06 million in Morocco to establish a tire production project with an annual capacity of 6 million units, benefiting from zero tariffs on exports to the U.S. [3][12][13]. - The expansion projects in Thailand, Spain, and Morocco are part of the company's strategy to enhance global competitiveness and profitability [4][12][13].