In 2023, with the recovery of the global automobile industry chain and the pace of "going to sea" further accelerated, the operating situation of China's tire industry has fully recovered. Triangle Tire, Sailun Tire, Senkirin, General shares, Linglong tire and other leading enterprises in the overseas intensive expansion of production capacity. Under the background of demand growth, raw material prices, sea freight and other declines, the tire industry production and sales are booming, and the prosperity is high.
Recently, many tire companies such as Triangle Tire and Senkirin released 2023 annual performance forecasts, and the performance generally achieved substantial growth.
Triangle Tire released a performance forecast on the evening of January 29, which is expected to achieve a net profit attributable to the owner of the parent company of 1.347 billion yuan to 1.447 billion yuan in 2023, an increase of 82.61% to 96.17%. The company said that the domestic economy will pick up in 2023, the production and sales of the downstream automobile industry will grow rapidly, the demand for overseas markets will be strong, and the company's tire production and sales will increase significantly. At the same time, the company continued to strengthen lean management, effectively control product costs, making the level of profitability significantly improved.
Senkirin released a performance forecast on the evening of January 28, which is expected to achieve a net profit attributable to shareholders of listed companies of 1.3 billion yuan to 1.42 billion yuan in 2023, an increase of 62.33%-77.31%; Basic earnings per share of 1.87 yuan to 2.04 yuan. For performance growth, Sen Qilin said that in 2023, in overseas markets, the company's high-quality, high-performance products have cost-effective competitive advantages in the European and American tire markets, and the order demand continues to be in short supply; In the domestic market with high growth potential, there is also a recovery trend. At the same time, with the large-scale production of the second phase of the company's project in Thailand, Senkirin continues to maintain a steady growth trend, and constantly strengthens the company's brand's ability to participate in global competition.
Recently, a number of listed companies in the tire industry released pre-increase performance announcements. The performance forecast released by Linglong Tire shows that the net profit in 2023 is expected to be 1.350 billion yuan to 1.610 billion yuan, an increase of 362% to 451%; Gm expects 2023 net profit of 200 million to 270 million yuan, an increase of 1079% to 1492%; Guizhou Tire expects a net profit of 790 million yuan to 850 million yuan in 2023, up 84.24 percent to 98.23 percent year-on-year.
Boost demand in overseas markets
According to the disclosed performance forecast, a number of tire companies said that the increase in performance benefited from the boost of consumer demand in the overseas tire market, and the price of raw materials and sea freight fell.
In addition to Triangle Tire said that overseas market demand is strong, Sen Qilin said that overseas order demand continues to be in short supply, Linglong tire also said that the company benefited from overseas market demand in 2023, superimposed raw material prices and sea freight fell, product sales achieved greater growth.
General shares said that in 2023, the company's overseas dual bases continued to make strength, including the Thai factory to maintain production and sales, the Cambodian factory capacity accelerated, tire production and sales to achieve greater growth, market competitiveness continued to enhance, profitability significantly improved.
Guizhou Tire explained the main reasons for the growth in performance, saying that the average price of raw materials was relatively low during the reporting period, coupled with the increase in the capacity utilization rate of Vietnam projects, the increase in product gross margin, and the overall profitability of the company.
From January to November 2023, China exported 281 million semi-steel tires, an increase of 23.18%; The export of all steel tires is 114 million, an increase of 13.31%, which is a significant increase compared with 2022, indicating that the share of Chinese tires in overseas markets continues to increase.
At present, under the resonance of multiple factors such as tight demand, falling raw material prices and overseas layout of enterprises, the domestic tire industry has ushered in a rare development opportunity.
Drop in anti-dumping duties
In 2023, the pace of "going to sea" of tire enterprises has further accelerated, and leading enterprises in the industry such as Triangle tires, Sailun tires, Senkirin, General tires, and Linglong tires have intensively expanded their production capacity overseas. Among them, Sailun tires have been laid out in Vietnam, Cambodia and Mexico; Senkirin's overseas bases include Thailand, Spain and Morocco; Gm will also launch the second phase of the Cambodia project to further expand production capacity.
It is worth noting that while Chinese tire companies are accelerating the layout of overseas production bases, anti-dumping tax rates in Europe and the United States are expected to decline. Recently, Thailand ushered in a break in the United States anti-dumping investigation, and a number of tire companies benefited.
According to the announcement released by Senkirin on January 25, recently, the US Department of Commerce launched an anti-dumping investigation on passenger car and light truck tires in Thailand. According to the feedback of the responding lawyers, the final verdict of this review is consistent with the preliminary verdict: the separate tax rate of the final verdict of Senkirin Thailand is 1.24%.
In the result of this review arbitration, another compulsory response enterprise, Sumitomo Tire of Japan (Thailand company), the final separate tax rate is 6.16%; Other Thai tire companies that export to the United States have a final tax rate of 4.52%.
Sen Qilin said that before the release of the final tax rate of this review, Sen Qilin Thailand, as a non-compulsory respondent to the original trial investigation, applies to the original trial tax rate of 17.06% for other Thai tire companies exporting to the United States. After the release of the final tax rate of this review, Senkirin Thailand as a compulsory respondent will apply a separate tax rate of 1.24%, which is a significant decrease from the original trial tax rate, and Senkirin Thailand will also become the lowest separate tax rate of Thailand's passenger car and light truck tire exports to the United States. As the core overseas base of the company and an important profit engine of the company, the competitiveness and profitability of Senkirin Thailand is expected to be greatly improved.
A number of domestic listed companies have carried out layout in Thailand, and relevant companies will directly benefit from the tax rate reduction. According to the final results, in addition to the separate tax rate of Senkirin is 1.24%, the tax rate of Linglong tires and general tires is 4.52%, which is significantly lower than before.
Considering the reduction of tariffs on Thailand's exports to the United States, the shipment volume and gross profit margin of Chinese tire factories in Thailand are expected to increase.
Tire domestic demand and export space open, the demand is strong and expected to continue; The cost pressure of enterprises is reduced, and earnings will continue to improve. From 2023 to 2025, the overseas base of tire companies will accelerate production and the volume will rise.
(Source:https://finance.sina.com.cn/jjxw/2024-01-30/doc-inafharq7551599.shtml)