Investment Rating - The report assigns a "BUY" rating for the company with a target price of 23.32 yuan based on a 11x PE for FY26 [3][13]. Core Insights - The company's performance and sales volume are under pressure, with a 3.21% decrease in tire production and a 1.5% decrease in sales volume in 2025H1. Operating revenue increased by 0.24%, but net profit decreased by 37.64% [1][11]. - The company is focusing on globalization and international sales, with significant production capacity expansions in Thailand and Morocco, aiming to enhance competitiveness in global markets [5][15]. Financial Performance Summary - In 2025H1, the company produced 15.5695 million tires, with semi-steel tire production down 3.56% and all-steel tire production up 7.72%. Sales volume was 14.8703 million tires, with semi-steel tires down 1.65% and all-steel tires up 3.11% [1][11]. - The company achieved operating revenue of 4.119 billion yuan and a net profit of 672 million yuan in 2025H1, reflecting a significant decline in profitability [1][11]. - Forecasted net profits for 2025, 2026, and 2027 are 1.887 billion yuan, 2.294 billion yuan, and 2.431 billion yuan, respectively, indicating a recovery trend after a projected decline in 2025 [3][4][13]. Globalization and Sales Strategy - The company is expanding its global production capacity, with projects in Thailand and Morocco aimed at increasing high-performance tire production [5][15]. - The company has established a comprehensive sales system in international markets, achieving significant market shares in the U.S. and Europe, with over 5% in the U.S. replacement market and over 4% in Europe [5][15].