\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 058 Sailun Group Co.Ltd(601058) )
Event: the company released its annual report for 2021. During the reporting period, the company achieved revenue of 17.998 billion yuan (year-on-year + 16.84%) and net profit attributable to the parent company of 1.313 billion yuan (year-on-year - 11.97%).
The overseas layout is perfect, and the tire production capacity continues to increase: the company is one of the leaders in China's tire industry. At the same time, it is also the first enterprise in China to establish tire production plants overseas. It has built modern tire production bases in Qingdao, Dongying, Shenyang, Weifang, Vietnam, Cambodia and other places, with obvious advantages in global operation. During the reporting period, the company operated steadily. According to the announcement, in 2021, the company achieved the output of 453976 million tires, a year-on-year increase of + 6.56%, and the sales volume of 436196 million tires, a year-on-year increase of + 4.98%, driving the company's tire business revenue to reach 17.998 billion yuan, a year-on-year increase of + 16.84%. While enjoying the advantages of the existing capacity scale, the company continues to increase its own capacity. In January 2021, it announced that it would invest 3.011 billion yuan to build Vietnam's phase III "project with an annual output of 3 million semi steel radial tires, 1 million all steel radial tires and 50000 tons off-road tires". In February 2021, it announced that it would invest 720 million yuan to build Weifang's "project with an annual output of 1.2 million high all steel radial tires and 6 million semi steel radial tires". In addition, In May 2021, an announcement was issued to invest an additional 1.112 billion yuan in the "Cambodia investment and construction project with an annual output of 5 million semi steel radial tires", increasing the design capacity of the project to 9 million semi steel radial tires, and further accelerating the pace of overseas layout. According to the announcement, the project has been completed across the board and has entered the stage of mass production and sales. In addition, the company announced in February 2022 that it plans to invest 1.426 billion yuan to build the "Cambodia annual output of 1.65 million all steel radial tires project". In the future, with the gradual implementation of relevant projects, the global layout of the company is expected to be further accelerated.
The first liquid gold tire is expected to gradually increase in volume in the future: the company has distinctive characteristics of industry university research integration and independently developed liquid gold tire by using the new materials prepared by the world's first "chemical rubber mixing" technology. As the world's first tire product that can improve rolling resistance, wet skid resistance and wear resistance at the same time, it took the lead in breaking the "devil's triangle" law, and its excellent performance has been tested and certified by many authoritative institutions. In terms of environmental protection, due to its excellent performance, liquid gold tires can save fuel and prolong the service life of tires. In addition, it can reduce carbon emissions and reduce the generation of waste tires. It has great social value while providing economic value. At present, the construction of 60000 ton chemical rubber mixing device in phase I of the world's first 300000 ton chemical rubber mixing project with "liquid gold" rubber as its product is accelerating. In the future, with the gradual promotion of relevant projects, the company's liquid gold tire products are expected to be in large quantities.
Investment suggestion: we expect the net profit of the company from 2022 to 2024 to be 1.99 billion yuan, 3.06 billion yuan and 4.04 billion yuan respectively, maintaining the Buy-A investment rating.
Risk warning: the landing of projects under construction is not as expected; The macro environment is less than expected
