SAILUN GROUP(SH:601058) Huaxin Securities·2024-07-10 01:00Investment Rating - The report maintains a "Buy" investment rating for the company [5][9] Core Views - The company is expected to achieve a significant increase in net profit for the first half of 2024, with estimates ranging from 2.12 billion to 2.18 billion yuan, representing a year-on-year growth of 102.68% to 108.41% [2][3] - The company's production and sales volumes have reached historical highs, driven by its globalization strategy, technological innovation, and brand development [3][5] - Cost pressures are easing, with a potential for further profit improvement in the third quarter due to declining raw material prices [4][5] - The company is committed to its global development strategy, with ongoing capacity expansions in Cambodia, Vietnam, and plans for new projects in Mexico and Indonesia [5][8] Summary by Sections Financial Performance - The company forecasts revenues of 32.88 billion, 38.16 billion, and 41.15 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.23, 1.49, and 1.66 yuan [9][11] - The projected growth rates for revenue are 26.6% in 2024, 16.1% in 2025, and 7.8% in 2026 [11] Production and Sales - The company has achieved over 30% year-on-year growth in sales for its full-steel, semi-steel, and non-road tire products [3][5] - The production capacity is being enhanced with new projects in Cambodia and Vietnam, aiming for a total annual production capacity of 21 million semi-steel tires and 1.65 million full-steel tires [5][8] Cost Management - The average prices for key raw materials such as natural rubber and styrene-butadiene rubber have increased significantly, but recent trends indicate a potential decrease in costs [4][5] - The INE shipping index has also shown a significant drop, which may further alleviate cost pressures [4][5]