SAILUN GROUP(SH:601058) SINOLINK SECURITIES·2025-10-28 15:27Investment Rating - The report maintains a "Buy" rating for the company, anticipating a significant increase in stock price over the next 6-12 months [5]. Core Insights - The company achieved total revenue of 27.6 billion RMB in the first three quarters of 2025, representing a year-on-year growth of 16.8%, while net profit attributable to shareholders was 2.87 billion RMB, down 11.5% year-on-year [2]. - In Q3 2025, the company recorded a single-quarter revenue of 10 billion RMB, up 18% year-on-year and 9% quarter-on-quarter, with a net profit of 1.04 billion RMB, down 4.7% year-on-year but up 31.3% quarter-on-quarter [2]. - The company continues to see growth in tire sales, with Q3 2025 tire production reaching 20.49 million units, a 7% increase year-on-year, and sales of 21.3 million units, a 10% increase year-on-year [3]. - The average selling price of self-produced tires increased by 7.25% year-on-year, while the cost of key raw materials decreased by 8.3% year-on-year, contributing to improved performance in Q3 [3]. - The company has laid the foundation for a new factory in Egypt, with a total investment of 291 million USD, expected to produce 3.6 million tires annually and generate approximately 190 million USD in annual sales [4]. - The company has made significant breakthroughs in the passenger car supply market, becoming the exclusive tire supplier for the FAW-Volkswagen Jetta VS8 model and securing contracts with several major domestic automakers [4]. Financial Forecasts and Valuation - The company is projected to achieve net profits of 3.716 billion RMB, 4.452 billion RMB, and 5.026 billion RMB for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 12.95, 10.80, and 9.57 [5]. - Revenue is expected to grow from 31.8 billion RMB in 2024 to 37.4 billion RMB in 2025, with a growth rate of 17.46% [9].