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

Shandong Linglong Tyre is trading at CNY 12.09, well below its 200‑day SMA of 14.71 and the DCF‑derived fair value of 16.57, indicating a notable discount. The 20‑day SMA sits at 12.47, suggesting the stock is near short‑term support but still above the 52‑week low of 11.79. Technical momentum shows a bearish trend direction, yet the MACD histogram turned positive (0.04) and the signal line is bullish, while the RSI of 35 points to oversold conditions that could spark a rebound. Dividend yield remains attractive at 3.42% with a modest payout ratio of 36%, supporting income‑focused investors.
Fundamentally, the company posts a forward P/E of 6.8 versus a trailing P/E of 16.8, reflecting expectations of earnings acceleration (forward EPS of 1.78 versus trailing 0.72). Leverage is moderate with a debt‑to‑equity of 62.7%, but free cash flow is negative, highlighting cash‑generation concerns. Volatility is elevated at 24% over 30 days, while beta is exceptionally low (0.09), suggesting limited market‑wide price swings. Overall, the stock appears undervalued, dividend‑sustainable, and positioned for a potential upside if earnings improve and technical support holds.