SAILUN GROUP(601058) Minsheng Securities·2024-10-30 15:01Investment Rating - The report maintains a "Buy" rating for the company with a target price of 14.71 CNY per share [2][3]. Core Views - The company reported a robust performance in Q3 2024, achieving a revenue of 23.628 billion CNY, a year-on-year increase of 24.28%, and a net profit attributable to shareholders of 3.244 billion CNY, up 60.17% year-on-year [2][3]. - The company's global capacity expansion is progressing steadily, with a focus on non-highway tire markets and the innovative "Liquid Gold" tire technology enhancing brand strength and market competitiveness [3][4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 23.628 billion CNY, with Q3 revenue at 8.474 billion CNY, reflecting a year-on-year increase of 14.82% and a quarter-on-quarter increase of 7.84% [2]. - The net profit attributable to shareholders for the first three quarters was 3.244 billion CNY, with Q3 net profit at 1.092 billion CNY, showing a year-on-year increase of 11.50% [2][3]. - The company’s gross profit margin for Q3 2024 was 27.69%, slightly down from the previous year due to rising raw material costs [2][3]. Market Position and Strategy - The company has a production capacity exceeding 70 million tires, with facilities in multiple locations including Qingdao, Dongying, and overseas in Vietnam and Cambodia [2][3]. - The "Liquid Gold" tire technology has been recognized for its superior performance, reducing rolling resistance and enhancing safety and energy efficiency, which has positively impacted sales [3][4]. Future Projections - Revenue projections for 2024-2026 are estimated at 33.148 billion CNY, 36.521 billion CNY, and 41.900 billion CNY respectively, with net profits expected to reach 4.256 billion CNY, 4.950 billion CNY, and 5.861 billion CNY [4][5]. - The report anticipates an EPS of 1.29 CNY for 2024, with a PE ratio of 11, indicating strong growth potential [3][4].