SAILUN GROUP(601058) Huachuang Securities·2024-10-31 12:21Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [1][15]. Core Views - The company's performance in Q3 2024 met expectations, with revenue of 23.628 billion yuan, a year-on-year increase of 24.28%, and a net profit of 3.244 billion yuan, up 60.17% year-on-year. The Q3 revenue was 8.474 billion yuan, reflecting a year-on-year increase of 14.82% and a quarter-on-quarter increase of 7.84% [1]. - The company plans to invest 111.9 million USD in the "Cambodia Gombok Economic Zone Project," which aims to attract leading companies in the rubber industry and enhance its global presence [1]. - The company has shown steady growth in production and sales, with Q3 2024 tire production and sales reaching 19.216 million and 19.334 million units, respectively, marking increases of 17.6% and 22.8% year-on-year [1]. - The average tire price in Q3 2024 was 422.7 yuan per unit, with a year-on-year increase of 5.6% [1]. - The report anticipates stable profit growth in the future, supported by capacity release and cost management strategies [1]. Financial Summary - For 2024E, total revenue is projected to be 32.114 billion yuan, with a year-on-year growth rate of 23.6%. The net profit is expected to reach 4.232 billion yuan, reflecting a growth rate of 36.9% [2]. - The company’s PE ratios for 2024, 2025, and 2026 are projected to be 11.0x, 10.0x, and 8.0x, respectively [2]. - The company’s total assets are expected to grow from 33.726 billion yuan in 2023 to 51.955 billion yuan by 2026 [5].