Tire listed company in the first half of the "high price and low price"

Not long ago, nine listed tire companies in China released the 2017 semi-annual report one after another.

According to the overall analysis, most of these tire companies face the problem of “rising prices and falling profits”.

Poor investment return

Compared with the previous year, from January to June, the return on net assets of Chinese listed tire companies showed an overall downward trend.

This shows that most of the domestic tire companies’ shareholder return on investment has declined year-on-year.

In the first half of the year, Huayi Group and Yantai Tire A are rare tire companies that have seen positive growth in net asset yields.

Among them, Huayi Group owns dual money tires. Tire is just one of the company's main businesses.

The report data shows that in the first half of the year, Shuangqin Group’s net profit loss was 240 million yuan. If you rely solely on tire business, it may be difficult for your ROE to increase.

é»” Tire A received 240 million yuan in relocation compensation. After deducting related cost expenses, 176 million yuan was included in non-operating income of the company.

If this part of non-recurring gains and losses is discarded, the company’s net profit loss will be 141 million yuan, a year-on-year drop of 155.86%.

At the same time, the return on net assets of Qingdao Double Star dropped slightly year-on-year and was relatively stable.

From the perspective of revenue rankings, exquisite tires and triangle tires are still in the top two positions. However, other tire listed companies are narrowing the gap between the two companies.

In addition, the revenue rankings of three wheeled companies, namely Sai Jin Yu, Aeolus and S-Gat, have all declined to some extent.

Many companies expand investment

Statistics show that from January to June, a number of tire listed companies still invested large sums of money in external projects.

Aeolus shares have made some equity investments to purchase shares in China Automotive Shuangxi Tire, Qingdao Huanghai Rubber and Pirelli Industrial Tire.

Triangular tires and racing wheels Jinyu also invested hundreds of millions of yuan in new and expanded projects.

Among them, Sai Yuen Jinyu invested $44,437,800 (approximately RMB 290 million) in its Vietnam plant, and built an annual production of 1.2 million sets of all-steel radial tires and 30,000 tons of off-road tires.

In addition, Huayi Group's investment in factories in Anhui, Xinjiang, and Jiangsu also increased.

These investments in fixed assets will, to a certain extent, affect the company's cash flow and further reduce the net cash flow of the semi-annual report.

Taking Saiwan Jinyu as an example, the company invested a total of 456 million yuan in half a year, an increase of 115 million yuan over the previous year, resulting in a decrease in the net cash flow on the semi-annual report.

Revenue and profit are not proportional to

In the first half of 2017, the issue of “increased prices and decreased profits” of listed tire companies was prominent.

It is reported that the operating income of the nine listed tire companies has risen. But this is not reflected in the net profit.

(Note: Qingdao Shuangxing and Huayi Group have other main business, and the relevant data cannot be reflected)

According to the data, the operating revenue of Saiyu Jinyu in the first half of the year was as high as 6.526 billion yuan, but after deducting non-recurring gains and losses, the net profit was only 15 million yuan.

Fengshen tires and Guizhou tires all suffered huge losses.

From the data analysis, compared with other companies, the net profit of triangle tires is relatively high. The company's operating income was 4.082 billion yuan and net profit reached 212 million yuan.

In addition, in 9 listed companies, Linglong Tire's operating income and net profit ranked first.

In the first half of this year, the company realized a total operating income of 6.732 billion yuan and obtained a net profit of 420 million yuan.