Sailun rising: China’s listed tyre companies ranked in 2022 Q3

Sailun’s rapid ascent puts the manufacturer on the cusp of challenging for a global top ten tyre manufacturer ranking

Based on stock market reporting for the third quarter of 2022, the top nine Chinese listed tyre companies ranked by revenue are Sailun, Linglong, Triangle, Huayi (the holding company of Double Coin), Guizhou Tyre, Sentury, Aeolus, Jiangsu General, and Doublestar. (The leading Chinese tyre company according to Tyrepress global rankings is ZC Rubber (Hangzhou Zhongce), but it is not listed.) The figures show that Sailun has completed a meteoric rise this year to become the Chinese tyre industry’s stock market leader, with an income of more than 6 billion yuan in the quarter, putting it within reach of the global top 10 tyre manufacturers.

In early 2017 Tyrepress reported amidst changes in the manufacturer’s international management structure that Sailun was implementing a five-year plan to position itself as a top ten global manufacturer. The manufacturer noted the unpredictability of the world at the time, though even this acknowledgement of a volatile market could not have predicted the pandemic. Nevertheless, there are good signs for the company’s prospects of achieving this goal in the latest reports. Its third-quarter performance implies that it is on the cusp of mounting a serious challenge for top ten status, approaching the annual revenue of our 2022 ranking‘s tenth-placed manufacturer, Taiwan’s Cheng Shin Rubber, maker of Maxxis tyres.

Linglong comfortably in second place

The leader among listed companies in 2021, Linglong is in second place, with more than 4 billion yuan in revenue. Triangle, Huayi (only the tyre business income is counted), and Guizhou Tyre make up a third tier, with revenue between 2 billion and 2.5 billion yuan.

The remaining four tyre companies’ income ranges from 1.1 billion to 1.6 billion yuan. The revenue of Sailun and Doublestar increased significantly year-on-year: more than 30 per cent. The performance of Triangle, Guizhou Tyre and Sentury is also dazzling, increasing about 20 per cent.

Triangle, Guizhou, Jiangsu record ‘outstanding growth’

In terms of net profit, Triangle, Guizhou Tyre and Jiangsu General had outstanding growth rates compared to last year, with a year-on-year increase of more than 80 per cent. The performance of Aeolus is also good. The company has gone from a loss in the third quarter last year to profit in 2022.

Among all the tyre companies that issued announcements, Doublestar was the only tyre company that lost money in the third quarter.

Sentury pulling clear of tier four

Looking at the first three-quarters of the year, the revenue situation is similar. Only Huayi’s tyre business revenue reached 7.22 billion yuan, slightly higher than Triangle’s. Sentury gradually transcended other tier-four tyre-makers with an income of 4.75 billion yuan, though this is still insufficient to enter the range of the third group.

In the first three quarters, the revenue of Huayi, Triangle and Guizhou Tyre exceeded 6 billion yuan. In the fourth tier, Aeolus, Jiangsu General, and Doublestar have incomes between 3 billion and 4 billion yuan.

Profitability

From the perspective of net profit from January to September, Sentury is worthy of attention. The company’s net profit in the nine months was as high as 660 million yuan, second only to Sailun among the listed companies. The company achieved a net profit of 660 million yuan through revenue of 4.75 billion yuan, a dazzling number.

Another enterprise worth watching for different reasons is Doublestar; the company’s loss for January-September 2022 reached -460 million yuan.