Core Viewpoint - The domestic tire industry is experiencing simultaneous scale expansion and profit pressure, with significant revenue growth but a sharp decline in net profits among listed companies [1] Revenue Growth Factors - Revenue growth for the top 10 listed tire companies is primarily driven by two factors: deepening global capacity layout and breakthroughs in the new energy vehicle (NEV) supply market [2] - Leading tire companies have effectively avoided trade barriers through overseas factories, with Zhongce Rubber's production bases in Thailand and Indonesia contributing nearly 4 billion yuan in revenue [2] - The explosive growth of the NEV market, with a 41.4% year-on-year increase in production, has opened new growth avenues for tire companies [2] Domestic Replacement Market - The domestic replacement market has also supported revenue growth, with companies like Qingdao Doublestar adopting a "one area, multiple customers" strategy to cover core urban networks [3] - Guizhou Tire is actively developing group users with high demand for replacement tires, effectively reducing customer costs through superior performance [3] Cost Pressure - Despite revenue growth, listed tire companies are facing profit declines due to rising raw material prices and cost structure imbalances [4] - The significant volatility in natural rubber prices, which accounts for over 30% of production costs, has severely impacted cost control [4] - The cost of raw materials, including synthetic rubber and carbon black, has also increased, further intensifying cost pressures on tire companies [4] Structural Overcapacity - The domestic tire industry continues to face structural overcapacity, with intense competition in low-end products leading some companies to adopt price-cutting strategies, further compressing profit margins [5] - It is anticipated that raw material prices may gradually decline in the second half of the year as Southeast Asia enters the rubber tapping season [5] Future Outlook - Companies are exploring ways to stabilize procurement costs through long-term agreements and strategic reserves [6] - The continued growth of high-value-added products like smart tires and improved utilization of overseas capacity may enhance profitability [6] - Short-term challenges remain, with companies needing to focus on technological innovation and cost control to overcome the profit pressure [6]