SAILUN GROUP(SH:601058) Donghai Securities·2024-07-10 13:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company's performance slightly exceeded expectations, with the industry showing continued improvement. The company expects to achieve a net profit attributable to shareholders of 2.12-2.18 billion yuan in H1 2024, representing a year-on-year increase of 102.68%-108.41% [7] - The projects in Cambodia and Vietnam are progressing smoothly, with the Cambodian project expected to have an annual production capacity of 12 million semi-steel radial tires upon completion [7] - The company is expanding its global footprint by targeting markets in Indonesia and Mexico, which will enhance sales flexibility and reduce transportation costs [7] - The forecasted EPS for 2024-2026 is 1.23 yuan, 1.42 yuan, and 1.82 yuan, respectively, with corresponding PE ratios of 11.83x, 10.23x, and 8.00x [7] Summary by Sections Financial Performance - The company anticipates a net profit of 2.12-2.18 billion yuan for H1 2024, a year-on-year increase of 102.68%-108.41% [7] - The Q2 single-quarter net profit is projected to be 1.09-1.15 billion yuan, reflecting a year-on-year increase of 57.74%-66.43% and a quarter-on-quarter increase of 5%-11% [7] - The company’s revenue for 2024 is expected to reach 30.98 billion yuan, with a year-on-year growth rate of 19.25% [8] Production Capacity Expansion - The Cambodian project will enhance production capacity to 21 million semi-steel radial tires and 1.65 million steel radial tires annually [7] - The Vietnam project is also on track, with an expected production of 3 million semi-steel tires and 1 million steel tires [7] Global Market Strategy - The company is focusing on expanding its presence in Indonesia and Mexico, with a new factory in Mexico set to produce 6 million semi-steel radial tires annually [7] - This strategy aims to reduce exposure to tariffs and improve supply chain efficiency [7]