SAILUN GROUP(SH:601058) Minsheng Securities·2024-07-10 13:30Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 14.56 CNY [1] Core Views - The company is expected to achieve a net profit attributable to shareholders of 10.86 to 11.46 billion CNY in the first half of 2024, representing a year-on-year growth of 57.16% to 65.85% [1] - The company has experienced significant growth in both domestic and international sales, with product structure continuously improving, leading to a historical high in sales volume for all-steel, semi-steel, and non-road tires [1] - The company is accelerating its global capacity layout, with production expected to increase from its overseas bases in Mexico, Indonesia, Cambodia, and Vietnam, which will support performance growth [1] - The company's R&D expenses have reached 8.38 billion CNY, the highest ratio of revenue in its history, enhancing product capabilities and maintaining its leading position in the industry [1] Financial Performance Summary - The company forecasts total revenue of 33.148 billion CNY for 2024, with a growth rate of 27.6% compared to 2023 [2] - The net profit attributable to shareholders is projected to be 4.304 billion CNY in 2024, reflecting a growth rate of 39.2% [2] - The company’s gross margin is expected to be 27.00% in 2024, with a net profit margin of 12.98% [2] - The earnings per share (EPS) is projected to increase from 0.94 CNY in 2023 to 1.31 CNY in 2024 [3] Valuation Metrics - The price-to-earnings (PE) ratio is expected to decrease from 15 in 2023 to 11 in 2024, indicating a more attractive valuation [3] - The price-to-book (PB) ratio is projected to decline from 3.2 in 2023 to 2.6 in 2024 [3] - The company is expected to maintain a strong return on equity (ROE) of 23.20% in 2024 [2]