SAILUN GROUP(601058) 华创证券·2024-04-09 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 20.48 CNY, compared to the current price of 14.95 CNY [1]. Core Views - The company is positioned as a leader in the domestic tire industry with a comprehensive product layout and sufficient capacity expansion. The report highlights the growth potential in the non-road tire and giant tire markets, driven by global infrastructure and mining activities [1][5]. - The "Liquid Gold" tire product line is expected to enhance the company's brand and valuation, as it addresses key performance challenges in tire manufacturing [1][5]. Summary by Sections 1. Market Potential and Growth Drivers - The non-road tire market is projected to grow at an annual rate of 5%-8%, driven by increased capital expenditure in mining and manufacturing sectors [1][5]. - The global OTR tire market was valued at 26.6 billion USD in 2022 and is expected to exceed 40 billion USD by 2028, growing at a CAGR of 7.5% [20]. 2. Company’s Competitive Position - The company has a current production capacity of 260,000 tons per year for non-road tires, with plans to expand to 447,000 tons per year [1][5]. - The company has developed a full range of giant tire specifications (49-63 inches) and has established partnerships with major manufacturers like Caterpillar and SANY [1][5]. 3. Product Innovation and Brand Enhancement - The "Liquid Gold" tire line has broken the performance limitations traditionally faced in tire manufacturing, offering superior wet grip, wear resistance, and low rolling resistance [1][5]. - The company has positioned the "Liquid Gold" tires as high-end products, competing with international brands like Michelin and Continental [1][5]. 4. Financial Projections - The company is expected to achieve revenues of 25.88 billion CNY in 2023, 33.19 billion CNY in 2024, and 38.17 billion CNY in 2025, with corresponding net profits of 3.10 billion CNY, 4.21 billion CNY, and 4.91 billion CNY respectively [3][6]. - The report adjusts the profit forecasts for 2023-2025, reflecting an optimistic outlook for the company's financial performance [1][6].