The upturn performance of the downstream market has reversed as scheduled.
On October 28, Saixiang Technology announced its three-quarter report that from January to September, the company realized operating income of 469.8417 million yuan, an increase of 25.56% over the same period last year, and realized net profit of 34.5813 million yuan belonging to shareholders of listed companies, an increase of 103.28% over the same period last year. Net profit belonging to shareholders of listed companies after deducting non-recurrent profit and loss was 25.6468 million yuan, an increase of 505.21% over the same period last year; earnings per share were 0.18 yuan per share.
Benefit from the significant increase in sales orders for production expansion and manufacturing upgrading in the tire industry
In recent years, Goodyear, Bridgestone, Pirelli, Michelin and other major tire manufacturers have raised tire prices and raised the investment budget for tire expansion and manufacturing upgrading. the company firmly seized the market opportunity of the arrival of the investment cycle of domestic and foreign tire manufacturers, with a significant increase in newly signed sales orders, and the implementation cycle of on-hand orders is expected to continue until the second half of 2014.
Overseas markets drive earnings growth
With the acceleration of the establishment of overseas factories by Chinese tire enterprises, the company relies on its own technological advantages, good customer relations and the competitive position of the industry leader. Actively expand Southeast Asian emerging markets with great market potential represented by Vietnam, India, Thailand and Indonesia. It is expected that with the further improvement of market recognition, overseas sales will contribute more revenue to the company. And rely on the advantages of export products in unit price and gross profit margin, effectively promote the profit level of the company.
Profit forecast
The company expects the net profit to be attributed to shareholders of listed companies in the range of RMB 4287-49.18 million, with a year-on-year increase of 240% RMB290%. We downgrade our previous profit forecast that the company's EPS will be RMB0.25,0.29,0.33 respectively from 2013 to 2015.