SAILUN GROUP(601058) 山西证券·2025-05-13 11:19Investment Rating - The report assigns a "Buy-B" rating to the company, indicating a positive outlook for its stock performance in the near term [4]. Core Insights - The company has shown strong revenue growth, with a total revenue of 31.80 billion yuan in 2024, a year-on-year increase of 22.42%. The net profit for the same year was 4.06 billion yuan, up 31.42% year-on-year [6]. - In Q1 2025, the company reported a revenue of 8.41 billion yuan, reflecting a quarter-on-quarter increase of 15.29% and a year-on-year increase of 2.90% [6]. - The company is expanding its global production capacity, with significant investments in overseas facilities in Indonesia and Mexico, which are expected to enhance its international competitiveness [8][9]. - Despite short-term challenges due to tariffs, the long-term growth potential remains strong due to the company's diversified product matrix and ongoing brand development efforts [11]. Financial Performance - The company achieved a tire production volume of 74.81 million units in 2024, a year-on-year increase of 27.59%, and sales of 72.16 million units, up 29.34% year-on-year [7]. - The overall gross margin for 2024 was 27.58%, slightly down by 0.05 percentage points year-on-year, while Q1 2025 saw a gross margin of 24.74%, down 2.95 percentage points quarter-on-quarter [7]. - The projected net profits for 2025, 2026, and 2027 are 4.11 billion yuan, 4.90 billion yuan, and 5.57 billion yuan, respectively, with corresponding price-to-earnings ratios of 10, 9, and 8 times [11]. Market Position and Strategy - The company is actively mitigating risks associated with global trade tensions by diversifying its production bases across Southeast Asia, Europe, and North America [9]. - The establishment of production facilities in Cambodia and Vietnam has contributed to revenue growth, with the Cambodian facility achieving a revenue of 4.04 billion yuan in 2024, a 73.20% increase year-on-year [8]. - The company is focused on building a standardized production system across its international bases to enhance operational efficiency and reduce costs [9].