September 14, Thai rainstorms triggered floods in many places. Ubon Ratchatani in northeastern Thailand suffered the heaviest floods in nearly 20 years. Many affected areas have been inundated, and more than 20,000 people have been evacuated.
On September 18th, the conference of 2019 China Top 100 Automotive Parts Enterprises List and the Top 100 List of Global Automotive Parts Enterprises (hereinafter referred to as "Top 100 List") were held at Nanjing International Expo Conference Center, in which Prinx Chengshan was selected as one of 2019 China Top 100 Automotive Parts Enterprises, and ranked 49th.
Recently, Zhongzhi (Beijing) Certification Co., Ltd. supervised and audited Prinx Chengshan Intellectual Property Management System. Experts of the audit team audited and validated the conformity and effectiveness of the operation of Prinx Chengshan’s intellectual property management system in accordance with the relevant standard clauses of GB/T 29490-2013 Enterprise Intellectual Property Management Standards.
On 28 August, the conference of top 500 petroleum and chemical enterprises of China and the Summit Forum of large chemical enterprises’ development of China were held in Anda City, Heilongjiang Province.
On August 24, the unveiling ceremony of Prinx Chengshan New Energy Automobile Tire Co-ordinated Research Laboratory was held in Rongcheng, Shandong Province, with the theme of "New Energy, New Challenges and Win-Win for Future ".
Shanghai, China - On August 19, the 17th China International Tire Expo, with the theme of "Innovation, Professionalism, Efficiency, Leading the Future", opened at Shanghai World Expo Exhibition Hall. Prinx Chengshan brought products of its four brands: Prinx, Chengshan, Austone and Fortune.
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 a surge in G&A expense in 2019 due to the new plant, the expense ratio is likely to reduce while the earnings go up once the new factory runs smoothly. We initiate BUY with a TP of HK$7.5, suggesting 20% upside potential.
On July 25, the "Leader of Energy Efficiency for Key Energy Consumption Products in the Petroleum and Chemical Industry in 2018" conference sponsored by the China Petroleum and Chemical Industry Federation was held in Yingkou
Recently, the 13th Annual Manufacturing Industry and Logistics Industry Development Conference, sponsored by China Transport Association and the Logistics Technical Equipment Committee, was held in Nanning, Guangxi. More than 700 participants attended the meeting.