GTC(SZ:000589) Guohai Securities·2024-04-19 07:00Investment Rating - The report maintains a "Buy" rating for the company [2][81]. Core Views - The company is expected to achieve revenues of 107.01 billion, 133.95 billion, and 141.85 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding net profits of 9.98 billion, 12.78 billion, and 14.23 billion yuan [11][81]. - The projected price-to-earnings (PE) ratios are 10, 8, and 7 for the years 2024, 2025, and 2026, respectively, indicating a favorable long-term growth outlook [11][81]. Financial Data - In 2023, the company reported a revenue increase of 13.76% year-on-year and a net profit increase of 94.19% year-on-year [32]. - The company's return on equity (ROE) is projected to remain stable at 12% for 2024 and 2025, increasing to 13% in 2026 [82]. - The gross profit margin is expected to be 22% for 2024 and 2025, and 23% for 2026 [82]. - The company’s total assets are projected to grow from 17,676 million yuan in 2023 to 22,888 million yuan by 2026 [82]. Operational Metrics - The company’s operating cash flow for 2023 is reported at 1,987 million yuan, with a significant increase expected in the following years [82]. - The asset turnover ratio is projected to improve from 0.54 in 2023 to 0.62 in 2026 [82]. - The company is currently expanding its production capacity, with a focus on high-performance tires, which is expected to enhance its competitive position globally [80][81].