TRIANGLE TYRE(SH:601163) Guolian Securities·2024-05-04 18:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of 23.80 CNY, based on a 13x PE for 2024 [4][10]. Core Insights - The company achieved a significant year-on-year increase in net profit of 89% in 2023, driven by recovering domestic and international demand and a decline in raw material prices [2][10]. - In 2023, the company sold 25.68 million tires, marking a 15.6% increase year-on-year, with domestic and international sales growing by 20% and 12% respectively [2][10]. - The company launched 117 new products in 2023, enhancing product performance and brand influence through various marketing initiatives [3][10]. Financial Performance Summary - In 2023, total revenue reached 10.422 billion CNY, a 13% increase from the previous year, while net profit was 1.396 billion CNY [10]. - The gross margin improved by 6.7 percentage points to 21.5%, and the net margin increased by 5.4 percentage points to 13.4% in 2023 [2][10]. - For 2024, the company is projected to generate revenues of 11.583 billion CNY, with a growth rate of 11.14% [12]. Sales and Market Trends - In Q1 2024, tire sales decreased by 4% quarter-on-quarter to 5.87 million units, influenced by seasonal factors [3][11]. - The company has adjusted prices for passenger car tires by 2-3% starting March 29, 2024, in response to rising raw material costs [3][11]. Earnings Forecast - The forecast for net profit is 1.462 billion CNY in 2024, with a growth rate of 4.71%, and EPS is expected to be 1.83 CNY per share [12].