Orient Securities Initiate Buy on Prinx Chengshan(01809.HK) for The First Time
Prinx Chengshan ranks No. 5 in All Steel Radial Tire market among domestic makers in China. With the production capacity enhancement in its China and Thailand factories, the company’s sales volume is expected to increase. Coupled with the higher premiums for its Thailand-made auto tires vs Chinese-made products and more revenue contribution from the deep cooperation business model, we estimate its GPM to widen in 2019E/20E. Even though we expect…
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