SAILUN GROUP(601058) 长江证券·2024-11-04 07:21Investment Rating - The investment rating for the company is "Buy" and is maintained [3][5]. Core Insights - The company reported a revenue of 23.63 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 24.3%. The net profit attributable to shareholders was 3.24 billion yuan, up 60.2% year-on-year, and the net profit after deducting non-recurring gains and losses was 3.13 billion yuan, an increase of 49.0% year-on-year. In Q3 alone, the revenue reached 8.47 billion yuan, a year-on-year increase of 14.8% and a quarter-on-quarter increase of 7.8% [4][5]. Summary by Sections Financial Performance - For the first three quarters of 2024, the overall gross margin was 28.4%, an increase of 2.9 percentage points year-on-year, while the net profit margin was 14.0%, also up by 2.9 percentage points year-on-year. In Q3, the gross margin was 27.7%, slightly down by 0.1 percentage points year-on-year and 2.1 percentage points quarter-on-quarter. The net profit margin for Q3 was 13.2%, down 0.6 percentage points year-on-year and 1.3 percentage points quarter-on-quarter [5]. Production and Sales - In Q3, the company produced 19.216 million tires and sold 19.334 million tires, with both figures showing quarter-on-quarter growth of 5.8% and 7.6%, respectively. The production and sales of all-steel, semi-steel, and non-road tires reached historical highs for the same period [5]. Market Position and Strategy - The company has a strong competitive edge in the non-road tire sector, with a comprehensive product range and high quality. Recent upgrades to the Qingdao factory's non-road tire technology are expected to enhance production capabilities significantly. The company is also expanding its production capacity in Vietnam and Indonesia [5]. Product Innovation - The "Liquid Gold" tire product has received international recognition for its superior performance and sustainability, significantly reducing carbon emissions compared to conventional tires. TÜV Rheinland's assessment indicates that the carbon footprint of these tires is reduced by 39% for trucks and 27% for passenger cars over their lifecycle [5]. Global Expansion - The company is actively expanding its global production capacity, with projects in Vietnam, Cambodia, Mexico, and Indonesia. By the end of 2023, the company plans to establish a total production capacity of 26 million all-steel tires, 103 million semi-steel tires, and 447,000 tons of non-road tires [5].