The downstream market picked up and the performance reversed as scheduled
On October 28, Saixiang Technology announced its three-quarter report. From January to September, the company achieved operating income of 46,98417 million yuan, an increase of 25.56% over the previous year; realized net profit attributable to shareholders of listed companies of 34.5813 million yuan, an increase of 103.28% over the previous year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 25.646,800 yuan, an increase of 505.21% over the previous year; earnings per share were 0.18 yuan/share.
Benefiting from the tire industry's expansion of production and manufacturing upgrades, sales orders increased significantly
In recent years, major tire manufacturers such as Goodyear, Bridgestone, Pirelli, and Michelin have successively raised tire prices and raised their investment budgets for tire expansion and manufacturing upgrades. The company has firmly grasped the market opportunity of the investment cycle of domestic and foreign tire manufacturers. New sales orders have increased significantly, and the execution cycle of on-hand orders is expected to continue until the second half of 2014.
Overseas markets drive revenue growth
As the overseas construction of Chinese tire companies accelerates, the company actively expands emerging markets in Southeast Asia with great market potential represented by Vietnam, India, Thailand, Indonesia, etc. with its technical advantages, good customer relationships, and the competitive position of industry leaders. It is expected that with the further increase in market recognition, overseas sales will contribute more revenue to the company and effectively drive the company's profit level with the advantages of export products in terms of unit price and gross margin.
Profit forecasting
The company expects the change range of net profit attributable to shareholders of listed companies in 2013 to be 4,287-4918 million yuan, and the net profit change range is a year-on-year increase of 240%-290%. We lowered our previous profit forecast. We forecast the company's 2013-2015 EPS to be 0.25 yuan, 0.29 yuan, and 0.33 yuan respectively, giving a recommended rating.