Sealand's research report points out that the next focus of the domestic tire industry is its high-end transformation process. With the gradual saturation of the low-end market, the transformation of domestic tire brands to the high-end market has become an irreversible trend. This transformation not only tests the comprehensive strength of enterprises in terms of product strength, channel coverage, and brand awareness, but also implies higher industry barriers and more lucrative potential returns. After experiencing the first differentiation achieved through overseas base layout, domestic tire companies are likely to usher in a second differentiation marked by high-end transformation. The two key indicators of high-end transformation are: the counter-trend increase in comparable-caliber gross margin, and the breakthrough in the high-end auto parts market. In the future, winners of high-end transformation will attract more attention in the capital markets, leading to an increase in PE ratios. Stocks to watch: Sailun Group, Qingdao Sentury Tire, Shandong Linglong Tyre, etc.