TRIANGLE TYRE(SH:601163) Guohai Securities·2024-05-02 06:00Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [80][84]. Core Insights - The company achieved a revenue of 10.422 billion yuan in 2023, representing a year-on-year increase of 13.03%, and a net profit of 1.396 billion yuan, up 89.29% year-on-year [10][84]. - The company has maintained a stable production capacity of approximately 26.88 million tires, with a production volume of 24.17 million tires in 2023, reflecting a capacity utilization rate of 89.93% [3][84]. - The company launched 117 new products in 2023, focusing on high-performance, green, differentiated, and intelligent products [3][84]. - The company is recognized by major manufacturers such as Yutong, JAC, and BYD, integrating its commercial vehicle tires into their new energy vehicle standard configurations [3][84]. Financial Performance Summary - In 2023, the company reported a gross profit of 2.242 billion yuan, with a gross margin of 21.51%, an increase of 6.68 percentage points year-on-year [10][84]. - The net profit margin for 2023 was 13.40%, up 5.40 percentage points year-on-year [10][84]. - The operating cash flow for 2023 was 1.798 billion yuan, reflecting a year-on-year increase of 20.95% [10][84]. - For Q4 2023, the company recorded a revenue of 2.552 billion yuan, a year-on-year increase of 5.65%, and a net profit of 339 million yuan, up 26.70% year-on-year [10][84]. Production and Sales Data - The company produced 24.17 million tires in 2023, a year-on-year increase of 7.52%, and sold 25.68 million tires, up 15.63% year-on-year [10][84]. - The average selling price of tires in 2023 was 403.01 yuan per tire [6][84]. - The tire production and sales rate for 2023 was 106.25%, indicating strong demand [6][84]. Future Projections - The company is projected to achieve revenues of 11.132 billion yuan, 11.745 billion yuan, and 12.486 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 1.602 billion yuan, 1.726 billion yuan, and 1.859 billion yuan [84][86]. - The report anticipates a stable return on equity (ROE) of around 11% for the next few years [84][86].