Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Insights - The company reported a revenue of 6.96 billion yuan for 2024, representing a year-on-year increase of 37.4%, with a net profit attributable to shareholders of 370 million yuan, up 72.8% year-on-year [2][6] - In Q1 2025, the company achieved a revenue of 2.12 billion yuan, a year-on-year increase of 47.0%, but the net profit attributable to shareholders decreased by 32.8% to 100 million yuan [2][6] - The company has expanded from a focus on bias tires to a full range of tire products, supported by strong R&D capabilities and overseas production bases in Thailand and Cambodia [2][6] Summary by Sections Financial Performance - For 2024, the company’s tire production and sales volumes were 20.89 million and 18.94 million units, respectively, with year-on-year increases of 74.5% and 59.7% [11] - The overall gross margin for 2024 was 16.4%, an increase of 0.6 percentage points year-on-year, although Q4 gross margin was 15.6%, down 4.9 percentage points year-on-year [11] - The company faced rising raw material costs, with natural rubber prices up 27.8% and synthetic rubber prices up 22.0% year-on-year [11] Market Dynamics - The overseas tire market remains robust, with Chinese brands gaining market share due to their cost-effectiveness, despite ongoing inflationary pressures in Europe and the US [11] - The company’s production bases in Thailand and Cambodia are performing well, with full order books and expected contributions from the second phase of the Thailand facility in the second half of 2025 [11] Strategic Developments - In April 2025, the company underwent a change in controlling shareholder, with Suhao Holdings acquiring a 24.5% stake from Hongdou Group for 2.12 billion yuan, which is expected to enhance the company's global expansion capabilities [11] - The partnership with a state-owned enterprise is anticipated to provide new growth momentum and facilitate adaptation to international market changes [11] Future Projections - The company forecasts net profits of 470 million yuan, 680 million yuan, and 840 million yuan for 2025, 2026, and 2027, respectively [11]