SAILUN GROUP(601058) 申万宏源·2024-05-08 07:02Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company achieved a revenue of 25.98 billion yuan in 2023, representing a year-over-year increase of 18.6%, and a net profit attributable to shareholders of 3.09 billion yuan, up 132% year-over-year [7] - The company is expected to benefit from its global expansion strategy, with new production bases in Mexico and Indonesia contributing to growth in 2025 and beyond [7] - The company has a strong product structure and is experiencing significant demand for its semi-steel tires, leading to record production and sales volumes [7] Financial Performance Summary - In Q4 2023, the company reported a revenue of 6.97 billion yuan, a year-over-year increase of 34.4%, and a net profit of 1.07 billion yuan, up 299% year-over-year [7] - For Q1 2024, the company achieved a revenue of 7.296 billion yuan, reflecting a year-over-year growth of 35.8%, and a net profit of 1.034 billion yuan, up 191% year-over-year [8] - The company's gross margin improved to 27.64% in 2023, an increase of 9.22 percentage points year-over-year, driven by rising production volumes and a favorable product mix [7] Production and Capacity Expansion - The company’s tire production volume reached approximately 58.64 million units in 2023, a year-over-year increase of 35.7%, with significant contributions from its Cambodia facility [7] - The company is expanding its production capacity in Cambodia and is set to increase its semi-steel tire output to 12 million units by the end of 2024 [7] - The company is also enhancing its production capabilities in Vietnam and has plans for new facilities in Mexico and Indonesia, expected to be operational by mid-2025 [7] Earnings Forecast and Valuation - The company’s projected net profits for 2024, 2025, and 2026 are approximately 4.57 billion yuan, 5.43 billion yuan, and 6.38 billion yuan, respectively, with corresponding price-to-earnings ratios of about 12, 10, and 9 [8]