The incident company released a three-quarter report. In the first three quarters of 2024, it achieved operating income of 6.34 billion yuan, an increase of 10.42% over the previous year, and achieved net profit of 1.726 billion yuan to mother, an increase of 73.72% over the previous year. Among them, 24Q3 achieved revenue of 2.23 billion yuan in a single quarter, up 1.13% year on year and 11.82% month on month; realized net profit of 0.648 billion yuan to mother, up 67.48% year on year and 13.04% month on month.

Tire sales improved month-on-month, and the 24Q3 industry continued to meet expectations. In the first three quarters, the company achieved tire sales of 23.3581 million bars, an increase of 7.88% over the previous year. Among them, sales of semi-steel tires and 0.6765 million tires were 22.6815 and 0.6765 million, respectively, up 7.33% and 30.10% year-on-year, respectively. Due to the release of Thailand's production capacity for phase II and a half steel tires and all-steel tires, the company's tire sales increased year-on-year in the first three quarters. On a quarterly basis, 24Q3 achieved tire sales of 8.261 million bars, an increase of 10.29% over the previous month. Among them, sales of semi-steel tires and all-steel tires were 806.94 and 0.1916 million bars respectively, up 10.06% and 21.19%, respectively. In terms of semi-steel tires, the 24Q3 shipping factor disrupted the war, and the month-on-month improvement in sales may be related to the gradual return to normal delivery. In terms of all-steel tires, the month-on-month increase in 24Q3 sales may be related to the gradual digestion of overseas inventories leading to an increase in orders for all-steel tires. In terms of profitability, 24Q3's gross sales margin and net sales margin were 39.52% and 29.07% respectively, up 4.26 and 0.31 percentage points from month to month, respectively. Overall, the company's profitability is still at a high level. Among them, receiving partial tax rebates from US Customs is the main reason for the month-on-month increase in gross margin in 24Q3. The cost performance advantage of domestic brand tires is prominent, and the market share tends to rise. Despite the intensification of competition in the global tire market, against the backdrop of high overseas inflation and high interest rates, the cost performance advantage of domestic brand tires is prominent, and they are gradually seizing the global tire market share. In January-August, US imports of semi-steel tires and all-steel tires were 111.02 and 38.39 million bars, respectively, up 5.07% and 23.72% year-on-year respectively. Among them, imports of semi-steel tires from Thailand accounted for 24.54%, an increase of 3.62 percentage points over the previous year; imports of all-steel tires from Thailand accounted for 27.94%, an increase of 1.11 percentage points over the previous year. EU semi-steel tires are mainly imported from China; all-steel tires are mainly imported from Southeast Asia, especially after the EU initiated anti-dumping sanctions against Chinese truck and bus tires in 2018. In January-August, EU imports of semi-steel tires and all-steel tires were 0.8521 and 0.4003 million tons respectively, up 8.67% and 5.45% year-on-year respectively. Among them, imports of semi-steel tires from China accounted for 57.11%, an increase of 0.96 percentage points over the previous year; imports of all-steel tires from Thailand accounted for 18.18%, down 1.01 percentage points from the previous year.

The Moroccan factory was officially put into operation. High-end equipment continues to advance production capacity, and the company continues to improve the global production capacity layout. On September 30, the first batch of tire products was officially launched at the Moroccan factory. The Moroccan plant is expected to release 6-8 million bars in 2025 and reach full production volume of 12 million bars in 2026. At that time, it will inject new growth momentum into the company. On the market side, the company adheres to the “hold high” strategy in the supporting market and adheres to the supporting principles of high-end global OEMs. The company continues to obtain qualified supplier qualifications from world-renowned OEM customers, and has become a qualified supplier for automakers such as German Volkswagen Group, German Audi, Renault, Stellantis (Strantis) Group, GAC Toyota, Guangzhou Automobile, Great Wall Motor, Geely Automobile, BAIC Motor, and Chery Automobile. The company continues to enhance the company's brand influence and popularity by opening up high-end supporting markets, seeking better customers and a wider market, and driving a continuous increase in sales premiums for the company's products in the global market.

The investment proposal estimates that the company's revenue for 2024-2026 will be 89.91, 115.45, and 13.053 billion yuan; net profit due to mother will be 22.14, 24.83, and 2.84 billion yuan, respectively, up 61.75%, 12.15%, and 14.41%, respectively; EPS will be 2.15, 2.41, and 2.76 yuan, respectively, corresponding PE will be 11.72, 10.45, and 9.14 times, respectively, maintaining the “recommended” rating.

Risks indicate the risk of increased international trade friction, the risk of a sharp rise in raw material prices, the risk of declining product sentiment, and the risk of new construction projects falling short of expectations.