\u3000\u3 China Vanke Co.Ltd(000002) 984 Qingdao Sentury Tire Co.Ltd(002984) )
Tire industry star, steadily promote the internationalization strategy Qingdao Sentury Tire Co.Ltd(002984) predecessor was founded in 2007. It has developed into a listed company in just 13 years. Its main products are large-size and high-performance passenger tires. Its product structure has been continuously optimized and its profitability is leading the industry. It has become a rising star in the tire industry. At present, the company has 12 million factories in Qingdao and 10 million factories in Thailand. At the end of 2021, the company “went out” again: it announced that it planned to raise 523 million euros to invest in the construction of 12 million high-performance cars and light truck radial tires in Spain. The company has formulated the “833plus strategy”, plans to build and operate 8 digital tire intelligent manufacturing bases, 3 global R & D centers and 3 global user experience centers, and choose the opportunity to acquire a world-famous tire manufacturer.
Thai factories are limited by the impact of “double reverse”, and capacity expansion raises the profit center. Thailand is the largest tire importer of the United States, with unique advantages in raw materials and low “double anti” tax rates. In addition, Thailand’s preferential tax policies and limited impact of punitive tariffs have become the strongest profit driving engine of the company. The plant expansion project in Thailand is advancing in an orderly manner. It is expected to increase the production capacity of 6 million semi steel tires and 2 million all steel tires, which will further improve the profitability of the company. At the same time, we analyze that the shipping situation is expected to fundamentally improve in the second half of 2022.
The intelligent manufacturing industry is leading, and the product quality is comparable to that of the global tire giant. The company introduces intelligent manufacturing into the production line, which greatly saves the number of employees, the labor cost is far lower than that of the industry, and the product qualification rate is as high as 99.8%. Fine management and intelligent manufacturing have obvious characteristics. In TM magazine’s 2021 summer tire test ranking, the comprehensive score of the company’s brand road Airlines tire is 8.4, ranking fifth, higher than Bridgestone. Through the intelligent manufacturing system, the company has not only reduced costs and increased efficiency, but also improved product quality, further improving the competitiveness of the company.
The incentive plan has clear objectives and strong guidance for long-term growth. The company disclosed the stock option incentive plan. The performance evaluation objectives of the company corresponding to this plan include operating revenue and net profit margin of sales. Based on the performance in 2021, the growth rate of operating revenue from 2022 to 2024 shall not be less than 35%, 70% and 100% respectively; The annual net profit margin of sales shall not be less than 15%. The incentive plan is conducive to further consolidate the talent advantage of the company. Meanwhile, with the continuous improvement of overseas demand, the production capacity of the company’s phase II plants in Thailand and Spain has been released steadily, and will gradually contribute to incremental performance during the assessment period.
Profit forecast: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.271/1.751/2.251 billion, corresponding to 15.3/11.1/8.6 times of PE. For the first time, give a “buy” rating.
Risk tip: Thailand’s “double anti” tax rate increases; The new capacity is less than expected; Risk of power and production restriction.
