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.
Recently, Prinx Chengshan and Qingdao University of Science and Technology（QUST） formally signed an agreement on cooperation between industry, education and research. Zhang Yiheng, Director of International Department of QUS
Beijing, China - On June 15, the healthy running of China Green Tire Safety Week 2019 launched in Beijing Olympic Forest Park. This year, China Rubber Industry Association and Prinx Chengshan joined hands again to broadcast the concept of green, low-carbon, safe and environmental protection concepts to the public in the form of "green healthy running", and to popularize tire safety knowledge and green tire knowledge through activities with public participation and attention.
Dubai, United Arab Emirates, June 10-12 - Recently, Prinx Chengshan, one of the world leading tire manufacturer, showed up on Automechanika Dubai 2019. Automechanika Dubai is the largest and most professional auto parts exhibition in the Middle East.
On May 22th to May 26th, Prinx Chengshan (Shandong) Tire Company Ltd (1809.HK) introduced and exhibited four tire bands（ “Prinx”“Chengshan”“Austone”“Fortune”）proudly at Autopromotec 2019 in Bologna. Established in the 1960s, the Autopromotec is held every two years, alternating with the Messe Essen. It is the largest auto parts and tires exhibition in Europe and one of the most influential exhibitions to expand the European auto parts sales channels.