China’s top listed tyremakers in 2023: a large gap between the upper and lower echelons

2023 was a good year for many Chinese tyre manufacturers. Especially for listed tyre companies, benefiting from overseas markets and production capacity advantages, they can cope with market competition more calmly. Several Chinese tyre manufacturers report that they are undergoing IPOs in the past year, but no company has completed the main board listing. Therefore, the number of tyre companies analysed this time remains at 10, namely Sailun, Linglong, Triangle, Huayi (Double Coin), Aeolus, and Jiangsu General on the Shanghai Stock Exchange; Guizhou Tyre, Sentury and Doublestar on the Shenzhen Stock Exchange; and Prinx Chengshan on the Hong Kong Stock Exchange.
The revenue rankings of the 10 companies run like this: Sailun, Linglong, Triangle, Double Coin, Prinx Chengshan, Guizhou Tyre, Sentury, Aeolus, Jiangsu General, and Doublestar. In terms of revenue, the primary form of the three echelons has stayed the same. The revenues of Sailun and Linglong exceed 20 billion yuan; the revenues of Triangle, Double Coin, Prinx Chengshan, and Guizhou Tyre are around 10 billion yuan; the revenues of Sentury, Aeolus, Jiangsu, General, and Doublestar are between 4.5 billion yuan and 8 billion yuan.
Compared with the ranking in 2022, the first and third echelons have not changed. The changes between the second echelons are significant, with Triangle’s revenue exceeding Double Coin. Meanwhile, Prinx Chengshan’s revenue exceeds Guizhou Tyre’s. It is worth noting that within the second echelon, the revenue of the four companies in 2023 is close, basically around 10 billion yuan. The gap between Triangle (10.42 billion yuan) and Guizhou Tyre (9.6 billion yuan) is around 800 million yuan. In other words, the ranking of the second echelon is subject to change. As the new production capacity of some companies is released in 2024, their ranking may also change in the future.
However, the gap between companies is significant in the first and third echelons. The revenue difference between Linglong and Sailun is 6 billion yuan. Doublestar and Sentury also have a revenue gap of nearly 3 billion yuan. However, as some tyre companies’ new production lines gradually release capacity in 2024, the income gap between companies may narrow (or further widen).
What is worth looking forward to in 2024 is Linglong’s Serbia plant and Jiangsu General’s plants in Thailand and Cambodia. The operation of the Serbia plant may expand Linglong’s market share in Europe and affect the tyre manufacturer’s operating data in 2024. Similarly, Jiangsu General’s production capacity may also break down in 2024 and improve its performance further. Sentury’s Moroccan plant is progressing rapidly, but it may have to wait until 2025 to impact operating performance. Sailun’s Mexican plant is also a key layout, but impacting the tyre manufacturer’s operating data in 2024 is challenging.
Look out for further analyses of these companies online at Tyrepress.com and TyrepressChina.com.
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