SAILUN GROUP(SH:601058) Minsheng Securities·2025-04-29 05:35Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 12.07 CNY per share [6]. Core Views - The company reported a revenue of 31.8 billion CNY for 2024, representing a year-on-year increase of 22.4%, and a net profit attributable to shareholders of 4.06 billion CNY, up 31.4% year-on-year [1]. - In Q1 2025, the company achieved a revenue of 8.41 billion CNY, reflecting a year-on-year growth of 15.3% and a quarter-on-quarter increase of 2.9% [1]. - The company is benefiting from its global capacity expansion and the introduction of its innovative "Liquid Gold" tire technology, which enhances performance and reduces energy consumption [4]. Summary by Sections Financial Performance - The company reported a gross margin of 25.3% in Q4 2024, down 8.3 percentage points year-on-year, and a gross margin of 24.7% in Q1 2025, down 3.0 percentage points year-on-year [3]. - The net profit margin for Q1 2025 was 12.4%, indicating sustained high profitability despite rising raw material costs [2]. Capacity and Market Position - The company has a production capacity exceeding 70 million tires, with facilities in various locations including Qingdao, Dongying, and Cambodia, and is on track to meet its mid-to-long-term capacity goals [3]. - The company has established partnerships with major domestic and international firms, enhancing its market presence in both domestic and overseas markets [3]. Product Innovation - The "Liquid Gold" tire technology has been recognized for its superior performance, reducing rolling resistance and improving durability, which addresses long-standing industry challenges [4]. - The technology has been certified by several international testing organizations, further solidifying the company's reputation in the market [4]. Future Projections - Revenue projections for 2025-2027 are estimated at 36.54 billion CNY, 41.85 billion CNY, and 46.16 billion CNY, respectively, with net profits expected to reach 4.50 billion CNY, 5.27 billion CNY, and 6.15 billion CNY [5][9]. - The report anticipates a continued strong growth trajectory, supported by the expansion of the tire market and the company's strategic initiatives [4].