SAILUN GROUP(601058) KAIYUAN SECURITIES·2024-10-31 15:38Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's Q3 performance met expectations, with tire production and sales continuing to rise. The company reported a Q3 tire production of 19.22 million units and sales of 19.33 million units, representing a quarter-on-quarter increase of 5.83% and 7.64% respectively. However, the average price per tire decreased by 5.55% year-on-year to 423 yuan per unit [2][4] - The company announced a cash dividend of 0.15 yuan per share, accounting for 15.21% of the net profit attributable to shareholders for the first three quarters of 2024 [2][4] - The company is optimistic about its long-term growth trajectory, maintaining profit forecasts for 2024-2026 with expected net profits of 4.295 billion, 5.176 billion, and 5.801 billion yuan respectively [4] Summary by Sections Q3 Performance - In Q3 2024, the company achieved revenue of 8.474 billion yuan, a year-on-year increase of 14.82% and a quarter-on-quarter increase of 7.84%. The net profit attributable to shareholders was 1.092 billion yuan, up 11.50% year-on-year but down 2.29% quarter-on-quarter [4] Financial Forecasts - The company forecasts revenue growth from 32.137 billion yuan in 2024 to 45.297 billion yuan in 2026, with a compound annual growth rate of 22.0%. The net profit is expected to grow from 4.295 billion yuan in 2024 to 5.801 billion yuan in 2026, with an EPS of 1.31 yuan in 2024 and 1.76 yuan in 2026 [6][7] Global Expansion - The company plans to invest in the "Cambodia Kampot Economic Zone Project" with a total investment of 111.9 million USD to enhance its global strategy and optimize its supply chain. Additionally, the company is increasing its investment in its Mexican subsidiary to support the construction of a tire production facility [5]