Minsheng Securities: Multiple tire companies have issued price increase notices, optimistic about the profit recovery of tire companies

According to the Zhitong Finance APP, Minsheng Securities released a research report stating that recently, several tire companies, including Shandong Lanmai Tire Co., Ltd., have issued price increase notices. This round of price increases by tire companies may transfer part of the U.S. tariffs to American consumers, and the subsequent transfer of tariffs may continue. As domestic leading tire companies deepen their globalization process, corporate profits are expected to continue to grow, and their risk resistance capabilities are also expected to strengthen. Considering that tariffs are likely to continue to be transferred to American consumers, and that the profits of leading tire companies are expected to continuously improve with the deepening of the globalization process, it is recommended to focus on Sailun Group (601058.SH), SENTURY (002984.SZ), and Linglong Tyre (601966.SH). The main points of Minsheng Securities are as follows: Multiple tire companies have issued price increase notices, optimistic about the profit recovery of tire companies Event: Recently, multiple tire companies have issued price increase notices. On September 4, Shandong Lanmai Tire Co., Ltd. decided to increase the prices of all-steel 12R22.5 products, HC218, and HC101 by 5% starting from September 1, 2025; HC102 will be increased by 4%. The overall price of the 13R22.5 full series products will be increased by 1%, and adjustments will be made every six months based on market conditions until a 3% increase is achieved; on September 1, Jiangyin Anji Rubber Industry Co., Ltd. announced an increase of 4% in the price of Heng'an and boutique series butyl inner tubes based on the original price starting from September 1, 2025. On the same day, Zhongce Rubber also issued a price increase notice, raising the prices of all-steel 12R22.5 gold series products by 2%, and increasing the prices of Jinguang, Aika, and Jingda inner tube products by 4%, with the possibility of further price adjustments based on the rising trend of raw material prices and market changes. Geopolitical conflicts easing, product price adjustments may help transfer tariffs According to Baichuan Yingfu data, as of September 5, the prices of several major raw materials for tires have declined compared to the beginning of the year. For example, the price of natural rubber has decreased by 9.2% this year, the price of styrene-butadiene rubber has decreased by 15.58%, and the price of polybutadiene rubber has decreased by 10.53%. This round of price increases by tire companies may transfer part of the U.S. tariffs to American consumers, and the subsequent transfer of tariffs may continue. The globalization process of domestic leading tire companies continues to deepen Faced with the dual pressure of U.S. tariffs and European anti-dumping measures, Chinese tire companies are shifting from "passive response" to "active layout." For example, after the successful advancement of Zhongce Rubber's Southeast Asia base, they are also laying out a base in Mexico; Linglong Tyre continues to expand in Brazil after establishing bases in Serbia and Southeast Asia; Sailun Group has chosen to continue laying out a factory in Egypt after establishing bases in Southeast Asia and Mexico; SENTURY is also continuing to lay out in Morocco after starting production in Southeast Asia. In addition, companies like Pulin Chengshan, Guizhou Tire, and Qingdao Double Star are all planning to build new overseas factories. As the globalization process of domestic leading tire companies continues to deepen, corporate profits are expected to continue to grow, and their risk resistance capabilities are also expected to strengthen. Risk Warning Significant increases in shipping costs, significant rises in raw material prices, tire sales falling short of expectations, and policies not meeting expectations