The U.S. White House announced on the 11th that U.S. President Barack Obama has decided to impose a tariff on Chinese tires for a period of three years. The White House said in a statement that it will impose a 35% tariff on tires imported from China in the first year, 30% in the second year, and 25% in the third year.
According to industry sources, the current proportion of tire-listed companies is not high, with only about 10% of tires, and Aeolus shares are slightly higher, accounting for about 30%. In other words, even if the current phenomenon appears, the pressure on the valuation of tire shares exists, but it is not great.
Moreover, at present, there are still two pieces of information that can resolve the pressure of export disagreement. First, the growth space of China's auto industry is still optimistic. The rise in tire shares in the first half of this year was mainly due to the boom in the auto industry, as domestic autos, construction machinery, agricultural machinery and other industries are fast driven by the stimulating of aggressive macroeconomic policies and increasing government investment. In the recovery, logistics and transportation conditions improved rapidly, and the growing space for tire shares continued to expand. And taking into account the growing trend of Chinese residents' income, the future car ownership will continue to expand, which is also a relatively optimistic message for the space of the auto tire repair market. Therefore, the domestic market capacity of tire shares is also rapidly expanding, and it can absorb the expansion of production capacity in recent years to some extent.
The second is the increase in profitability as a result of lower costs. Among the main raw materials for tires, natural rubber and synthetic rubber account for more than 50% of the total cost. The fluctuation of rubber prices has a greater impact on the profitability of tire companies. The correlation between rubber prices and oil prices is relatively large. After a sharp drop in the second half of 2008, the rubber prices in the first half of the year were the lowest level since 2003, and the cost of tire companies decreased significantly in the first half of the year. Inflation and rising oil prices are expected to drive up the price of natural rubber in the second half of the year. The gross profit margin of Qingdao Double Star Tire Manufacturing was 16.72%, an increase of 8.16% year-on-year; the gross profit margin of Tire Tire's tire products was 6.59 percentage points higher than that of the same period of last year. The gross profit rate for delivery of tires (engineering, special tires) increased by 14.62 percentage points year-on-year. It is still optimistic that such information reflects the room for growth of tire shares.
View related topics: China and the United States tire special security case
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