SAILUN GROUP(601058) 中泰证券·2024-11-15 02:19Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported strong Q3 performance with revenue of 23.63 billion yuan, a year-on-year increase of 24.3%, and a net profit attributable to shareholders of 3.24 billion yuan, up 60.2% year-on-year [1] - The company plans to invest 100 million USD in Cambodia, which is expected to open up growth opportunities [1] - The profit forecast for 2024-2026 has been raised due to better-than-expected sales growth, with projected net profits of 4.39 billion, 5.13 billion, and 5.87 billion yuan respectively [1] Summary by Sections Financial Performance - Q3 revenue reached 8.47 billion yuan, a year-on-year increase of 14.8% and a quarter-on-quarter increase of 7.8% [1] - Q3 net profit was 1.09 billion yuan, up 11.5% year-on-year but down 2.3% quarter-on-quarter [1] - The company’s gross margin for Q3 was 27.7%, slightly down from the previous year [1] Production and Sales - The company produced 19.21 million tires and sold 19.33 million tires in Q3 [1] - The average product price decreased by 5.55% year-on-year but increased by 0.36% quarter-on-quarter [1] Investment Plans - The company plans to lease approximately 750 hectares of land in Cambodia for the construction of an economic zone, with an estimated total investment of 111.9 million USD [1] - The projected internal rate of return for the investment is 7.0%, with a payback period of 8.2 years [1] Earnings Forecast - The revised net profit estimates for 2024-2026 are 4.39 billion, 5.13 billion, and 5.87 billion yuan, reflecting year-on-year growth rates of 42%, 17%, and 15% respectively [1] - Corresponding P/E ratios are projected to be 11X, 10X, and 8X for the respective years [1]