601966:SSEShandong Linglong Tyre Co., Ltd. Class A Analysis

Technical outlook: The stock is trading below its short‑ and medium‑term averages, with a neutral momentum indicator and a bearish MACD signal, suggesting short‑term pressure near the identified support zone. Fundamental outlook: Valuation appears attractive, with a forward earnings multiple well below the current level and a price‑to‑book ratio under one, while the dividend yield is comparatively generous and the payout ratio modest. However, the balance sheet shows a high leverage ratio and thin profitability margins, which temper the upside.
The recent “Linglong Winter Experience” event in Europe highlights ongoing brand‑building efforts abroad, potentially supporting export growth, but the gap between the discounted cash‑flow estimate and market price implies that any recovery will likely be gradual and contingent on operational improvements.