SAILUN GROUP(601058) Minsheng Securities·2024-10-11 12:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 14.72 CNY per share [3][4]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 3.12 to 3.28 billion CNY for the first three quarters of 2024, representing a year-on-year increase of 58.52% to 61.98% [3]. - The strong performance is attributed to resilient demand in the U.S. for semi-steel tires and significant improvements in the steel tire segment, alongside competitive advantages in pricing for Chinese tire products in the U.S. and European markets [3][4]. - The company is advancing its globalization strategy with production capacities exceeding 70 million units, with ongoing projects in various locations including Vietnam and Cambodia [3][4]. Summary by Sections Financial Performance - For Q3 2024, the company expects a net profit of 1.06 to 1.13 billion CNY, showing a year-on-year increase of 7.99% to 15.13% [3]. - The first three quarters of 2024 are projected to yield a non-recurring net profit of 3.11 to 3.18 billion CNY, with a year-on-year growth of 48.17% to 51.50% [3]. Market Demand and Supply - The report highlights the robust import demand for semi-steel tires in the U.S., with Thai exports to the U.S. increasing by 9.52% year-on-year [3]. - The company has established strategic partnerships to mitigate raw material cost fluctuations, ensuring a competitive edge in pricing [3][4]. Product Innovation - The "Liquid Gold" tire technology has been recognized for its superior performance, reducing rolling resistance and enhancing safety and durability [4]. - The company has launched new product lines targeting electric vehicles and high-performance segments, which have received positive market feedback [4]. Future Projections - Revenue forecasts for 2024 to 2026 are estimated at 33.15 billion CNY, 36.52 billion CNY, and 41.90 billion CNY respectively, with net profits projected at 4.28 billion CNY, 4.94 billion CNY, and 5.84 billion CNY [4][5]. - The report anticipates a continued upward trend in earnings per share (EPS), with estimates of 1.30 CNY, 1.50 CNY, and 1.78 CNY for the respective years [5][6].