QINGDAO SENTURY TIRE CO.(SZ:002984) Huaxin Securities·2024-04-19 12:30Investment Rating - The report maintains a "Buy" rating for the company [2][4] Core Views - The company has shown significant revenue growth, with Q1 2024 revenue reaching approximately 2.115 billion yuan, a year-on-year increase of 27.59% and a quarter-on-quarter increase of 0.73% [2] - Net profit attributable to shareholders for Q1 2024 is about 504 million yuan, reflecting a year-on-year increase of 101.34% and a quarter-on-quarter increase of 34.28% [2] - The company has benefited from a reduction in anti-dumping tariffs, which has positively impacted its gross margin, reaching 31.3% in Q1 2024, an increase of 9 percentage points year-on-year [2] - The company is advancing its construction projects, including a new tire production facility in Morocco and another in Spain, which are part of its global expansion strategy [3] Summary by Sections Financial Performance - Q1 2024 tire production reached 8.0757 million units, a year-on-year increase of 28% and a quarter-on-quarter increase of 1.2% [2] - The company sold 7.6071 million tires in Q1 2024, a year-on-year increase of 15.7% [2] - The company’s net profit margin for Q1 2024 is 23.82%, up 8.73 percentage points year-on-year [2] Revenue Forecast - The company’s revenue is projected to be 9.96 billion yuan in 2024, 11.5 billion yuan in 2025, and 13.5 billion yuan in 2026, with corresponding EPS of 1.97 yuan, 2.26 yuan, and 2.62 yuan respectively [4][6] - The expected growth rates for revenue are 27.0% in 2024, 15.5% in 2025, and 17.4% in 2026 [4][6] Production Capacity - As of the end of 2023, the company has a tire design capacity of 30 million units, with ongoing projects expected to enhance production capabilities further [2][3]