Summary of Tire Industry Conference Call Industry Overview - The Chinese tire industry has seen a continuous increase in market share, surpassing 15% by 2024, indicating significant growth potential compared to international giants [1][2] - Haian Rubber has emerged as one of the top three tire manufacturers globally, following Michelin and Bridgestone, showcasing the rising status of Chinese companies in the global market [1][2] Competitive Landscape - The internal competition within the Chinese tire industry has stabilized, with leading companies like Zhongce and Sailun leveraging brand building, economies of scale, and technological barriers to maintain their advantages [1][4] - Major brands such as Chaoyang and Sailun have reached price parity with second-tier foreign brands in the replacement market, while high-end products are now comparable to top international brands [1][4] Brand Development - Chinese tire companies have made significant progress in brand development, particularly in the domestic original equipment and replacement markets [1][5] - High-end products like Chaoyang No. 1 and Sailun Golden One have shown strong market performance, enhancing brand image and driving growth in the replacement market [1][5] Overseas Business Importance - The overseas supply business is crucial for Chinese tire companies, with strong short-term profitability (gross margin around 35% or higher) and long-term benefits for brand image and pricing power in the overseas replacement market [1][8][9] - Companies like Zhongce, Linglong, and Sailun are already supplying overseas orders, which could lead to significant long-term growth opportunities [1][9] Market Performance - The overall performance of the Chinese tire industry is strong, with a good showing in the domestic semi-steel replacement market and high operating rates in overseas factories due to strong demand [3][10] - The all-steel product segment has performed well due to innovation and product diversification, with overall orders and operating rates remaining positive [3][10] Risks - The primary risk facing the Chinese tire industry is the volatility of rubber prices, which could impact short-term profitability [3][11] - Companies can mitigate this risk by passing on costs, making it essential to monitor rubber price trends closely [3][11] Investment Outlook - The current valuation of approximately 10 times earnings, combined with favorable conditions in domestic and overseas replacement markets, suggests that now is a good time to invest in Chinese tire companies [3][12] - Recommended companies for investment include Sailun, Linglong, Zhongce, and Senkiren, with a note to also monitor Haian Group [3][12]

Group 1 - The core viewpoint is that Sailun Tire (601058) considers the European Union as a significant sales market, with a strong order backlog from this region [1] - The company primarily supplies its products through overseas factories, indicating a robust supply chain to meet demand in the EU [1] - Sales are mainly conducted through a distribution model, highlighting the company's strategy in market penetration [1]

人民财讯1月20日电，赛轮轮胎（601058）1月20日在互动平台表示，欧盟区域是公司重要的销售市场之 一，目前公司在手的欧盟订单非常充沛，主要由公司位于海外的工厂进行供应。公司产品销售以经销模 式为主。 ...

Core Viewpoint - The report highlights the current trends in the chemical industry, focusing on price movements, supply and demand dynamics, and investment opportunities in undervalued leading companies amid a backdrop of geopolitical tensions and changing market conditions [1][4][8]. Industry Dynamics - In the week of January 12-18, 49 out of 100 tracked chemical products saw price increases, while 20 experienced declines, and 31 remained stable. The average monthly price of 49% of products rose compared to the previous month [3]. - The average price of WTI crude oil futures increased by 0.54% to $59.44 per barrel, while Brent crude oil futures rose by 0.66% to $63.76 per barrel during the same week [4]. - As of January 9, U.S. crude oil production averaged 13.753 million barrels per day, a decrease of 58,000 barrels from the previous week but an increase of 272,000 barrels year-on-year. Total U.S. oil demand was 21.009 million barrels per day, up by 178,200 barrels from the previous week [4]. Price Movements - The price of butadiene rose by 4.04% to 9,663 yuan per ton as of January 18, with a month-on-month increase of 25.98% but a year-on-year decrease of 20.8%. The production of butadiene was 109,300 tons, down 2.85% from the previous week [5]. - Epoxy propane prices increased by 8.84% to 8,620 yuan per ton, with a year-on-year rise of 9.88%. The market operating rate was 65.38%, reflecting a 1.51% increase from the previous week [6][7]. Investment Recommendations - As of January 18, the price-to-earnings ratio (TTM) for the SW basic chemical sector is 14.68, at the 59.64% historical percentile, while the price-to-book ratio is 1.54, at the 40.20% historical percentile. The SW oil and petrochemical sector has a TTM P/E ratio of 13.44, at the 39.81% historical percentile [8]. - Investment suggestions include focusing on undervalued leading companies, the impact of "anti-involution" on supply in related sub-industries, and the growing importance of self-sufficiency in electronic materials and certain new energy materials amid rising prices [2][8]. - Recommended stocks include Wanhua Chemical, Hualu Hengsheng, and others, with a focus on sectors like semiconductor materials, OLED materials, and new energy materials [8][9].

Group 1 - The core point of the news is that Sailun Tire's stock price increased by 5.2% to 16.58 yuan per share, with a trading volume of 521 million yuan and a turnover rate of 0.98%, resulting in a total market capitalization of 54.517 billion yuan [1] - Sailun Group Co., Ltd. is located at No. 43 Zhengzhou Road, Qingdao, Shandong Province, established on November 18, 2002, and listed on June 30, 2011. The company's main business involves the research, production, and sales of tire products, with tire products accounting for 98.89% of its revenue [1] Group 2 - From the perspective of major fund holdings, one fund under Yinhua Fund has a significant position in Sailun Tire. Yinhua Zhaoli One-Year Holding Mixed A (009977) increased its holdings by 28,100 shares in the third quarter, holding a total of 57,200 shares, which represents 1.51% of the fund's net value, making it the second-largest holding [2] - The fund has a total scale of 43.9426 million yuan, with a year-to-date return of 2.46%, ranking 5997 out of 9009 in its category, and a one-year return of 12.79%, ranking 6144 out of 8164 [2]

Group 1 - The "Shenyang Employment" live-streaming recruitment initiative was launched to address a significant labor shortage at Sailun (Shenyang) Tire Co., Ltd., which is facing a gap of over a thousand workers as it prepares to launch a new production line [3][4] - The live-streaming event was organized quickly, with the team contacting the local human resources department on January 10 and starting the live broadcast on January 12, showcasing the company's facilities and job opportunities [3][5] - The live-stream attracted a total of 27,600 viewers during the event, with over 100,000 cumulative views across five days and more than a thousand resumes submitted [4][5] Group 2 - The company offered monthly salaries ranging from 4,000 to 7,000 yuan, with additional benefits such as subsidized accommodation and full social insurance coverage, which were highlighted during the live-stream [4] - The initiative involved collaboration with 13 districts to maximize outreach, allowing job seekers to apply directly through links provided during the live broadcast [4][5] - The immediate success of the live-stream led to the scheduling of interviews the following day, with the first batch of 30 candidates already undergoing health checks for employment [5]

Group 1: JinGu Co., Ltd. - JinGu Co., Ltd. has developed a low-carbon wheel named "Avatar," which is significantly lighter and stronger than traditional steel wheels, reducing weight by nearly half and improving fuel efficiency and carbon emissions [5][6][7] - The "Avatar" wheel weighs 18 kg compared to the traditional 44 kg steel wheel, allowing for a total weight reduction of over 500 kg for heavy trucks, potentially saving over 10,000 yuan in fuel costs annually for truck operators [5][6] - The company has transitioned from producing agricultural machinery wheels to becoming a primary supplier for domestic automotive manufacturers, including General Motors and Volkswagen [6][7] - JinGu's R&D team, consisting of experts from top universities, has successfully enhanced the strength of steel wheels by 3 to 4 times through innovative manufacturing processes [7] - The company plans to establish 20 production lines for the "Avatar" wheels over the next five years, aiming for an annual output of 50 million units and a projected revenue of 15 billion yuan [7][8] Group 2: Sailun Group - Sailun Group has introduced a colorful tire series called "Liquid Gold," which offers a variety of colors while maintaining performance, marking a significant innovation in the tire industry [9][11] - The company has developed a continuous liquid-phase mixing technology that overcomes the traditional "magic triangle" challenge of achieving low rolling resistance, high wet traction, and excellent wear resistance [12][13] - The "Liquid Gold" tires can reduce fuel consumption by 8% for gasoline vehicles and 12% for electric vehicles, while also improving wear resistance by 20% to 30% [13] - Sailun has established a comprehensive R&D platform and has been recognized for its innovative tire solutions, which are now marketed globally [14] Group 3: Pacific Precision Forging - Pacific Precision Forging specializes in the production of differential gears, essential for vehicle safety during turns, and has become a leader in this niche market [18][19] - The company has invested 5% of its sales into R&D for over 20 years, focusing on innovation and quality improvement to meet the growing demands of the automotive industry [20] - With the rise of electric vehicles, Pacific Precision Forging has capitalized on the increased demand for high-performance differential assemblies, securing contracts with major brands like Tesla and NIO [21] - The company is also exploring new markets, including robotics, to diversify its product offerings and enhance its competitive edge [21]

Core Viewpoint - The company is strategically shifting its production of semi-steel tires for the EU market to Southeast Asia in response to impending anti-dumping duties set to be finalized by June 2025 [2] Group 1: Company Strategy - The company has confirmed that the final anti-dumping tax rate for Chinese semi-steel tires will be determined by the EU in mid-June [2] - The company is committed to a global layout strategy and has already begun transferring EU semi-steel tire orders to its factories in Southeast Asia [2] - The current production capacity at the company's factories in Vietnam and Cambodia is operating at full capacity, with efforts underway to further enhance production capabilities [2] Group 2: Market Position - The company has a substantial backlog of semi-steel tire orders for the EU market, indicating strong demand [2] - The ongoing optimization of global production capacity aims to better meet the needs of consumers worldwide [2]

Core Viewpoint - The European Union will not release the preliminary anti-dumping tax rate for Chinese semi-steel tires, with the final ruling expected in mid-June 2025, which may impact the sales of the company’s semi-steel tires [1] Group 1: Company Strategy - The company has been implementing a globalization strategy and has already begun transferring its semi-steel tire orders for the EU to factories in Southeast Asia [1] - The current order backlog for semi-steel tires in the EU is substantial, with production capacity at the factories in Vietnam and Cambodia being fully utilized [1] - The company is actively working to enhance its production capacity to better meet global consumer demand [1]

Core Viewpoint - The company is strategically adapting to the EU's anti-dumping investigation on semi-steel tires by shifting production to Southeast Asia, ensuring a robust order backlog and optimizing global capacity to meet consumer demand [1]. Group 1: Impact of EU Anti-Dumping Investigation - The EU's final anti-dumping tax rate for Chinese semi-steel tires will be determined in mid-June 2025, as per the information released in December 2025 [1]. - The company has proactively transferred its EU semi-steel tire orders to factories in Southeast Asia, specifically in Vietnam and Cambodia, to mitigate potential impacts from the investigation [1]. Group 2: Production Capacity and Strategy - The current production capacity at the company's factories in Vietnam and Cambodia is operating at a very full capacity, indicating strong production capabilities [1]. - The company is focused on continuously optimizing its global production layout to better satisfy global consumer needs [1].