轮胎产销两旺，公司盈利能力显著提升。公司上半年完成轮胎产量1609 万条，同比增长18.9%；其中半钢轮胎产量1560 万条，同比增长17.9%；全钢轮胎产量49 万条，同比增长62.8%。完成轮胎销售1510 万条，同比增长10.4%；其中半钢轮胎销量1461 万条，同比增长9.1%；全钢轮胎销量48 万条，同比增长71.3%。从单季度盈利能力来看，美国对泰国乘用车胎双反税率下调后公司营业成本降低，盈利能力也明显提升，公司2 季度销售毛利率为35.3%，同比提升12.8pct，环比提升4pct；销售净利率为28.8%，同比提升9.8pct，环比提升4.9pct。occurrences
On August 29, 2024, the company released its semi-annual report. In the first half of 2024, it achieved total operating income of 4.11 billion yuan, up 16.2% year on year; net profit to mother was 1.08 billion yuan, up 77.7% year on year; of these, total operating income was 2 billion yuan in a single quarter, up 6.2% year on year, down 5.7% year on month, and net profit due to mother was 0.57 billion yuan, up 61.1% year on year and 13.9% month on month.
Management analysis
Tire production and sales are booming, and the company's profitability has increased significantly. The company produced 16.09 million tires in the first half of the year, up 18.9% year on year; of these, semi-steel tires produced 15.6 million bars, up 17.9% year on year; all-steel tire production was 0.49 million bars, up 62.8% year on year. Sales of 15.1 million tires were completed, up 10.4% year on year; of these, semi-steel tires sold 14.61 million bars, up 9.1% year on year; sales of all-steel tires were 0.48 million bars, up 71.3% year on year. Looking at profitability in a single quarter, after the US lowered the double anti-tax rate on Thai passenger car tires, the company's operating costs were reduced, and profitability also increased markedly. The company's gross sales margin for the second quarter was 35.3%, up 12.8 pcts year on year, up 4 pcts month on month; the net sales margin was 28.8%, up 9.8 pcts year on year, up 4.9 pcts month on month.
Globalization of layout and internationalization of sales are progressing simultaneously to continuously enhance brand competitiveness. In terms of overseas bases, the company's Morocco factory is currently progressing steadily according to the plan, making every effort to start production and operation in the fourth quarter of 2024. Stronger comprehensive advantages make the demand for orders from the Moroccan factory stronger. Subsequently, along with the increase in production capacity of the Moroccan factory, the needs of the company's high-quality customers can be better satisfied. In terms of sales, the company has shaped the high-end brand image of Chinese tires in the replacement market, covering more than 150 countries and regions, including America, Europe, Asia Pacific and Africa. Currently, the company is targeting the principle of attacking the world's middle and high-end OEMs in the supporting market, and has become a qualified supplier for German Volkswagen Group, German Audi, Renault, Stellantis Group, GAC Toyota, Guangzhou Automobile, Great Wall Motor, Geely Automobile, BAIC Motor, Chery Automobile, etc.
Profit Forecasts, Valuations, and Ratings
The company is a leader in intelligent tire manufacturing in China. With the expansion of new production capacity and the acceleration of overseas layout, the steady growth in performance will also achieve a further increase in global market share. We expect the company's net profit to be 2.202 billion yuan, 2.435 billion yuan, and 2.748 billion yuan respectively in 2024-2026. The PE valuation corresponding to the current market value is 10.77/9.74/8.63 times, respectively, maintaining a “buy” rating.
Risk warning
Raw material prices fluctuate greatly, the release of new production capacity falls short of expectations, international trade frictions, sea freight price fluctuations, RMB exchange rate fluctuations, and “double reverse” tax rate fluctuations
