Linglong Tire (601966): Independent tire brand construction should start with supporting

Event: Recently, at the 2019 Automotive-Tire Cross-Border Development Summit Forum, industry experts analyzed the status of independent brand construction in the tire and automotive industry, and proposed “Chinese brand tire products are not significantly different in quality from international brands.The key to building a brand. ”

Investment points: The company supplies original tires to more than 60 automobile factories. It is the first domestic tire brand. The domestic supporting market has covered China FAW, Sinotruk, Shaanxi Sinotruk, Foton Motor, Dongfeng Motor, Changan Ford, BYD, Geely,OEMs such as Chery, Great Wall, SAIC-GM-Wuling, etc.

Overseas supporting markets have covered German Volkswagen, Audi, American GM, Ford Motor, Tata India, Brazil Hyundai, Uzbek GM and other manufacturers.

The company has a preliminary cooperation agreement with Volkswagen Group to become a global supplier of Volkswagen Group.

Focus on technological innovation, establish a cutting-edge scientific innovation platform. The company has strong R & D and innovation capabilities. It cooperates with many domestic universities and relies on national technology centers to set up Beijing R & D centers and North American R & D centers.Established a research branch, a modal analysis laboratory, a six-component force laboratory, a vehicle performance simulation prediction laboratory, and the industry’s first noise laboratory and low-rolling oscilloscope laboratory.

The company’s brand value continued to increase in 2018.

The brand value of US $ 0.8 billion was included in the list of “China’s 南京夜网论坛 500 Most Valuable Brands”, ranking first in China’s tire industry.

Earnings forecast We expect the company’s EPS for 2019/2020/2021 to be 1, respectively.

14 yuan, 1.

33 yuan, 1.

60 yuan, the current sustainable urban surplus rate is 15 times, 12 times, 10 times, maintaining the “recommended” level.

Risks suggest new projects are worse than expected; raw material costs; downstream demand decreases