Finance Associated Press, February 24 (Reporter Xiao Lianghua).So far in 2023, the leading enterprises in China's tire industry with both revenue and profits have started a new round of expansion; In order to increase profits, foreign-funded tire companies that rely on price increases to increase sales have opened a new production capacity layout. The substantial increase in downstream capital expenditure has laid the foundation for the high prosperity of the tire mold industry.
The tire mold business in the second half of 2023 is not bad. "Halma Technology (002595SZ) secretary Li Jing told the Financial Associated Press reporter that the soft control shares (002073SZ) also saw a significant increase in orders in hand in the first three quarters of last year. On January 30, Julun Intelligence (002031SZ) announced that the company recently signed sales contracts with 10 tire manufacturers for hydraulic vulcanizers, and the contract amount exceeded 60% of last year's revenue.
The prosperity of the tire industry is high, and the shortage of semi-steel tires has become a common phenomenon in the industry, so many companies have the demand to increase capital expenditure, and the prosperity of the upstream mold industry is expected to continue. The person in charge of a domestic tire mold company told the Financial Associated Press reporter that his company is a foreign-funded factory in China, and in recent years, with the continuous improvement of the quality and performance of domestic tire mold equipment, "a lot of orders have been snatched away." ”
Downstream to increase capital expenditure
Since 2023, tire companies have generally had sufficient orders in hand, production and sales have been booming, and their performance has increased significantly, which has become the confidence for tire companies to increase capital expenditure.
According to the statistics of "Tire Business", from 2023 to February 2024, the global tire production capacity investment will be nearly 100 billion. Among them, the investment in car tires increased the most, with an amount of more than 44.6 billion; followed by off-highway tire investment of more than 7 billion; Almost no change in investment is truck and bus tires - not only did not increase much investment, but many tire companies also announced a suspension of investment, or even directly cut related production capacity.
In terms of domestic tire companies, the reporter of the Financial Associated Press found that in addition to individual companies, going overseas and expanding production overseas has almost become the "standard" action of tire listed companies, and the pace is getting faster and faster, and the selection area of overseas bases is also more extensive. In the next few years, Sailun tires (601588SH), Mori Kirin (002984SZ), General Motors (601500SH) and other tire companies' overseas production capacity, especially semi-steel tire production capacity, will usher in a new wave of rapid release period.
According to the statistics of Cherut Network, by the end of 2023, a total of 12 Chinese companies have built a total of 18 tire factories overseas, and 7 tire factories are under construction.
In the second half of 2023 alone, Sailun Tire announced three overseas capital expenditure projects. In December last year, GM announced that its wholly-owned subsidiary, the Cambodian subsidiary, planned to invest in the construction of Cambodia's high-performance radial tire project (phase II), and Sen Kirin also continued to promote its global layout.
The relevant person in charge of Sen Kirin said that the company's Morocco base will start construction in October 2023 and is expected to be put into operation in the fourth quarter of this year, and the Spanish base is expected to start construction at the end of 2024 and may be put into operation in 2026. Both bases have a planned production capacity of 12 million semi-steel bars.
It is worth noting that the landing of Thailand's "double anti-dumping" review is further conducive to semi-steel going to sea. In January 2024, the United States announced the final ruling of the anti-dumping review in Thailand, and the tax rate is proposed to be 1462-21.09% to 124-6.16%。The reduction in tax rates is good for the profitability of Thai factories and the improvement of competitiveness in overseas markets.
Tire mold enterprises have sufficient orders
The downstream strong capital expenditure, the upstream tire mold enterprises have benefited a lot, and the orders of related enterprises have been greatly improved.
Among them, as of the end of the third quarter of 2023, the company's contract liabilities are 394.5 billion yuan, an increase of 35 percent year-on-year43%, an increase of 1251%, with an inventory of 592.2 billion yuan, an increase of 32 percent year-on-year20%, an increase of 1668%, and the orders in hand continued to grow rapidly.
In terms of Halma Technology, in the first half of 2023, the company's tire mold business revenue will be 18500 million yuan, a year-on-year increase of 9%. The relevant person in charge of the company said that in the second half of last year, the demand for foreign tire molds continued to grow steadily, and the company's tire mold business was still good.
In terms of Julun Intelligence, the company announced at the end of January that it had recently signed sales contracts with 10 tire manufacturers for hydraulic vulcanizers, with a total contract amount of RMB 574 yuan, more than 60% of last year's revenue.
Julun Intelligent said that since the second half of 2023, benefiting from the continuous recovery of domestic economic activities and the increase in overseas market demand, superimposed on the decline of tire raw materials** and sea freight, the recovery momentum of the tire industry has been strong, which has also provided impetus for the technical transformation of tire factories and the investment of new overseas factories, driving the increase of the company's orders for related products.
In addition, Soft Control Co., Ltd. recently announced that the company and its subsidiaries are expected to have daily related party transactions with Sailun Tire and its subsidiaries based on the market ** and daily production and operation needs in 20244.5 billion yuan. From January to November 2023, the actual amount of transactions between the Company and its subsidiaries and Sailun Tire was 181.7 billion yuan.
A few families are happy and a few are sad. With the continuous development and growth of domestic tire mold enterprises, the living space of some foreign-funded enterprises has been squeezed. The person in charge of a foreign-funded mold company told the Financial Associated Press reporter that the technical level of local tire mold enterprises is getting better and better, and the R&D investment is also large. ”
Finance Associated Press reporter Xiao Lianghua).