Linglong Tyre(601966) 国海证券·2024-08-31 07:30Investment Rating - Buy rating is maintained for the company [1][15] Core Views - The company's net profit attributable to the parent company in 2024Q2 increased by 39 49% YoY and 0 43 billion QoQ [1][3] - The company plans to expand its Serbia project with an investment of 645 38 million USD aiming to produce 1 1 million high-performance radial tires [6] - The company's tire production and sales volume in 2024Q2 increased by 12 34% and 10 21% QoQ respectively [2] - The company's gross profit margin in 2024Q2 was 22 06% with a net profit margin of 9 08% [1][8] Financial Performance - In 2024H1 the company achieved operating revenue of 103 80 billion CNY a YoY increase of 12 37% and net profit attributable to the parent company of 9 25 billion CNY a YoY increase of 85 88% [1] - The company's operating cash flow in 2024Q2 was 5 02 billion CNY [14] - The company's R&D expenses in 2024Q2 were 2 05 billion CNY a QoQ increase of 0 03 billion CNY [5] Production and Sales Data - In 2024Q2 the company produced 2 183 71 million tires a YoY increase of 8 62% and sold 2 092 2 million tires a YoY increase of 8 62% [1][8] - The company's tire production and sales rate in 2024Q2 was 95 81% [8] Overseas Operations - The company's Thailand subsidiary achieved operating revenue of 2 018 billion CNY in 2024H1 a YoY increase of 26 77% [2] - The Serbia factory's first phase of truck and passenger car tire production has entered the capacity release stage contributing to the company's overseas market growth [6] Future Projections - The company's revenue is expected to reach 245 16 billion CNY in 2024 263 86 billion CNY in 2025 and 284 08 billion CNY in 2026 [6][15] - Net profit attributable to the parent company is projected to be 23 46 billion CNY in 2024 28 00 billion CNY in 2025 and 34 23 billion CNY in 2026 [6][15] - The company's ROE is expected to increase from 10% in 2024 to 13% in 2026 [15]