SAILUN GROUP(601058)2025-05-02 08:14Investment Rating - The report maintains a "Recommended" rating for Sailun Tire (601058.SH) [1] Core Views - The company demonstrated robust performance with a global expansion strategy, achieving record tire production and sales in 2024, with revenue of 31.802 billion yuan and a net profit of 4.063 billion yuan, reflecting year-on-year growth of 22.42% and 31.42% respectively [3][4] - In Q1 2025, the company reported revenue of 8.411 billion yuan and a net profit of 1.039 billion yuan, with year-on-year growth of 15.29% and 0.47% respectively [3] - The company’s tire production and sales reached historical highs in 2024, with production and sales volumes of 74.8111 million and 72.1558 million tires, marking increases of 27.59% and 29.34% year-on-year [3] - The average selling price of tires decreased by 4.19% to 422.78 yuan per tire, while the gross profit margin remained stable at 27.58% [3] - The report highlights the ongoing global capacity expansion, with production bases established in various countries, including Vietnam and Cambodia, and new projects in Mexico and Indonesia expected to commence by 2025 [3][4] Financial Summary - The projected revenue for 2025-2027 is 36.637 billion, 41.238 billion, and 45.063 billion yuan, with corresponding net profits of 4.237 billion, 5.209 billion, and 5.891 billion yuan, indicating growth rates of 4.28%, 22.95%, and 13.10% respectively [4][6] - The earnings per share (EPS) are forecasted to be 1.29, 1.58, and 1.79 yuan for the years 2025, 2026, and 2027, with price-to-earnings (P/E) ratios of 9.51, 7.73, and 6.84 [4][6] - The company’s gross profit margin is expected to slightly decline to 25.28% in 2025, while the net profit margin is projected to be 11.56% [6]