SAILUN GROUP(601058) Donghai Securities·2024-10-31 09:01Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company has shown steady revenue growth, with total operating income reaching 23.628 billion yuan, a year-on-year increase of 24.28%, and a net profit attributable to shareholders of 3.244 billion yuan, up 60.17% year-on-year [7] - The company is overcoming cost pressures while increasing production and sales, with tire production and sales in Q3 2024 reaching 19.2163 million and 19.3339 million units, respectively, representing year-on-year increases of 17.61% and 22.81% [7] - The company is actively pursuing global expansion, with significant progress in overseas projects, including the establishment of a factory in Indonesia and plans for a special economic zone in Cambodia [8] - The company is enhancing its research and development efforts, with R&D expenses of 737 million yuan in the first three quarters of 2024, and is expanding its product offerings to various domestic and international automotive manufacturers [8] - The earnings forecast for the company has been revised upward, with expected EPS for 2024, 2025, and 2026 at 1.31 yuan, 1.58 yuan, and 1.82 yuan, respectively, reflecting strong growth potential [9] Summary by Sections Financial Performance - In Q3 2024, the company achieved an operating income of 8.474 billion yuan, a year-on-year increase of 14.82%, and a net profit of 1.092 billion yuan, up 11.50% year-on-year [7] - The average price of tire products decreased by 5.55% year-on-year due to changes in product structure, while the company plans to adjust prices upward by 3%-5% starting November 1, 2024 [7] Global Expansion - The company is making strides in its global strategy, with the foundation ceremony for its factory in Indonesia held in September 2024 and plans to lease land in Cambodia for a special economic zone [8] - The registered capital of the company's Mexican subsidiary has been increased to support the production of 6 million semi-steel radial tires annually [8] Research and Development - The company invested 737 million yuan in R&D in the first three quarters of 2024, with a focus on product technology upgrades and market promotion [8] - The company has successfully entered the supply chain of several domestic and international automotive brands, including BYD and Chery [8] Earnings Forecast - The report projects EPS for 2024, 2025, and 2026 at 1.31 yuan, 1.58 yuan, and 1.82 yuan, respectively, with corresponding PE ratios of 11.27, 9.33, and 8.08 [9]