author | Luo Panjun
In addition to 
dimension one: scale
indicator 1. Total market value
The formula for calculating total market value is: total market value = closing price × total equity.
As of June 30, 2022, there were 18 listed tire and wheel companies, with a total market value of 181.7 billion yuan. They are mainly small-market companies with a market capitalization of 2 to 5 billion, and these companies account for as much as 50%. There are 5 listed companies with more than 10 billion yuan, accounting for 28% of the total number in the industry, and no company has a market value of more than 50 billion yuan.
Figure 1: Market value distribution of listed tire and wheel companies on June 30, 2022 (unit: home)
Figure 2: Total market value ranking of listed tire and wheel companies
Indicator 2, total assets
The total total assets of listed tire and wheel companies in 2021 total 1840 billion, a year-on-year increase of 12.61%, maintaining an overall growth trend.
Among them, no company has total assets exceeding 50 billion. The top three on the list have not changed. The first place is Linglong Tire (34.139 billion yuan), the second place is Sailun Tire (26.173 billion yuan), and the third place is Triangle Tire (16.739 billion yuan).
In addition, the total assets of 17 tire and wheel hub companies have increased, and one of them has achieved rapid growth of more than 50%.
Figure 3: Ranking of total assets of listed tire and wheel companies
Indicator 3, operating income
In 2021, the overall operating income of listed tire and wheel companies totaled 117.9 billion yuan, a year-on-year increase of 13.34%, and the overall growth was achieved.
Among them, the operating income of 4 companies exceeded 10 billion yuan, and the top three on the list have changed. The first place in operating income in 2021 is Lizhong Group (18.634 billion yuan), and the second place is Linglong Tire (18.579 billion yuan). The third place is Sailun Tire (17.998 billion yuan).
In addition, 15 tire and wheel companies achieved operating income growth, and one of them achieved rapid growth of more than 50%.
Figure 4: Ranking of operating income of listed tire and wheel hub companies
Indicator 4. Net profit
In 2021, the overall net profit of listed tire and wheel hub companies totaled 4.375 billion yuan, a year-on-year decrease of 47.28%. The industry's net profit dropped rapidly.
Among them, only one company's net profit exceeded 1 billion yuan, and three companies suffered losses. The top three on the list have not changed. The first place in net profit in 2021 is Sailun Tire (1.342 billion yuan), the second place is Linglong Tire (789 million yuan), and the third place is Senkylin (753 million yuan).
In addition, only 2 tire and wheel companies achieved net profit growth, 11 companies saw net profits decline, and 3 companies suffered losses, of which 1 company achieved rapid growth of more than 50%.
Figure 5: Net profit ranking of listed tire and wheel hub companies
Dimension 2: Growth
Indicator 5. Operating income growth rate
In 2021, 15 listed tire and wheel hub companies achieved operating income growth, and 3 experienced a decline in operating income. The sales of most listed tire and wheel companies have increased.
Figure 6: Ranking list of operating income growth rate of listed tire and wheel hub companies
Indicator 6. Gross profit growth rate
In 2021, 6 listed tire and wheel hub companies achieved gross profit growth, 12 saw gross profit declines, and a small number of listed companies' product profits improved. .
Figure 7: Gross profit growth ranking of listed tire and wheel companies
Indicator 7. Core profit growth
Core profit refers to the operating results generated by the company’s own business activities, excluding the impact of non-operating activities such as investment income and government subsidies. , restore the true profitability of corporate operating activities. Core profit = operating income - operating costs - taxes and surcharges - research and development expenses - sales expenses - administrative expenses - interest expenses.
In 2021, only 2 listed tire and wheel companies saw core profits increase, 10 saw core profits decline, 2 core profits fell to losses, and 3 core profits narrowed but failed to turn around.
Figure 8: Ranking list of core profit growth rates of listed tire and wheel companies
Dimension 3: Shareholder return
Indicator 8, ROE
shares Buffett once said that if I had to choose an indicator for stock selection, I would choose ROE. It is rare for a company to be able to create and maintain a high level of ROE. Such things are rare. Because when a company expands, it is extremely difficult to maintain a high ROE.
ROE, or return on net assets , is the percentage of net profit and average shareholders' equity, reflecting the level of income from shareholders' equity and measuring the efficiency of the company's use of 's own capital. Generally speaking, the higher the ROE, the higher the income per unit of net assets.
In 2021, no listed tire and wheel company’s ROE exceeded 20%, and 3 companies had negative ROE due to losses. Among them, the top three on the list have changed. Sailun Tire (13.68%) replaced Guizhou Tire in ranking first, Sen Qilin (12.35%) remained in second place, and Redick (9.75%) ranked third. Compared with the same period last year, only 4 companies' ROE improved and 14 companies' ROE decreased.
Figure 9: ROE ranking of listed tire and wheel companies
Dimension 4: Profitability
Indicator 9, gross profit margin
Gross profit margin = (operating income - operating cost) ÷ operating income, which represents the market competitiveness of enterprise products. Generally speaking, , the higher the gross profit margin, the stronger the market competitiveness of the product, and it is also related to the company's sales strategy.
In 2021, only one listed tire and wheel company has a gross profit margin of more than 30%, and four companies have a gross profit margin of less than 10%. Among them, the top three on the list have changed. Redick (30.89%) replaced Megashares in the first place, Megashares (29.45%) retreated to second place, and Sen Qilin (23.33%) dropped one place to third. Compared with the same period last year, only one company's gross profit margin improved, and 17 companies' gross profit margin declined.
Figure 10: Gross profit margin ranking of listed tire and wheel companies
Indicator 10. Core profit margin
Core profit margin = core profit ÷ operating income, excluding the impact of non-operating activities such as investment activities and government subsidies, reflecting the impact of corporate operating activities Profitability. Generally speaking, the higher the core profit margin, the more profitable the company's operating activities are.
In 2021, no listed tire and wheel company has a core profit margin of more than 30%, and 13 companies have a core profit margin of less than 5%. Among them, the top three on the list have changed, with Megashares (16.08%) maintaining the first place, Redick (15.55%) replacing Sen Qilin in second place, and Sen Qilin (14.89%) retreating to third place. Compared with the same period last year, only 2 companies saw an improvement in the profitability of their operating activities, while 16 companies experienced a decline in profitability.
Figure 11: Ranking of core profit margins of listed tire and wheel companies
Indicators 11. R&D expense rate
R&D expenses refer to the expenses paid for the research and development of a certain project, reflecting the importance that companies attach to R&D. Generally speaking, the higher the R&D expenses, the more attention the company attaches to R&D, but this is also related to the company's own financial strength and the choice of expense and capitalization of R&D investment.
The top three R&D expenses of listed tire and wheel companies in 2021 are Linglong Tire (934 million yuan), Lizhong Group (552 million yuan), and Sailun Tire (481 million yuan). The top three R&D expense ratios are Megashare (5.76%), Qingdao Doublestar (5.17%), and Linglong Tire (5.03%).
Figure 12: Ranking of R&D expenses of listed tire and wheel companies
Dimension 5: Operational efficiency
Indicator 12. Total asset turnover rate, inventory turnover rate
Total asset turnover rate is the net sales revenue and average total assets of the company in a certain period ratio, which is an indicator that measures the ratio between asset investment scale and sales level. The total asset turnover rate is an important indicator to examine the efficiency of an enterprise's asset operations. It reflects the flow rate of all assets from input to output during the operation of the enterprise, and reflects the management quality and utilization efficiency of all the assets of the enterprise.Generally speaking, the higher the value, the faster the company's total asset turnover, the stronger its sales capabilities, and the higher its asset utilization efficiency.
In 2021, there are three listed tire and wheel companies with a total asset turnover rate exceeding 1. The top three on the list have not changed. Lizhong Group (1.45) remains first, Dishengli (1.19) second, S*ST Giti (1.06) )third. Compared with the same period last year, the asset utilization efficiency of 10 companies increased, and the asset utilization efficiency of 8 companies decreased.
Figure 13-1: Ranking of total asset turnover rate of listed tire and wheel companies
Inventory turnover rate = [operating cost/((beginning inventory + ending inventory)/2)], which is one of the important indicators reflecting the operating capabilities of the company. It is used to It measures the company's inventory turnover rate within a certain period of time. The higher the inventory turnover rate, the stronger the company's ability to realize inventory assets and the faster the turnover rate of funds occupied in inventory. Under normal circumstances, a decrease in inventory turnover rate also indicates that the product's competitiveness has declined. If the competitiveness is not strong, the gross profit margin will inevitably decrease.
Figure 13-2: Ranking of total asset turnover rate of listed tire and wheel companies
Dimension 6: Profit quality
Indicator 13. Core profit cashback rate
Core profit cashback rate = Net cash flow generated from operating activities ÷ (Core Profit + other income), reflecting the ability of the company to convert the profit figures accounted for by the company's operating activities into real money. Generally speaking, the higher the core profit cashback rate, the higher the gold content of profits from operating activities. A core profit cashback rate of 1.2 to 1.5 is considered better, but it is also related to the characteristics of the industry.
In 2021, the core profit realization rate of three listed tire and wheel companies exceeded 1.2, and the digital profits of the three companies have not turned into real money flowing into the company. The top three on the list have changed. Jinfei Kaida (3.63) replaced Yueling Co., Ltd. ranked first, S*ST Giti (2.48) replaced Guizhou Tire and ranked second, Wanfeng Aowei (1.62) replaced General shares ranked third. Compared with the same period last year, the liquidity of operating activities of 2 companies increased, and the liquidity of operating activities of 11 companies weakened.
Figure 14: Ranking list of core profit realization rate of listed tire and wheel companies
Indicator 14. Upstream and downstream capital occupation ratio
The liquidity of operating activities is mainly affected by the profitability of operating activities, inventory policies and the ability to eat both ends. Among them, upstream and downstream The proportion of funds occupied is an important indicator that reflects the ability of both parties to eat.
Upstream and downstream capital occupation ratio = (upstream capital occupation scale + downstream capital occupation scale) ÷ operating income, indicating the amount of funds that unit income can occupy upstream and downstream/need to advance for upstream and downstream, reflecting the company's bargaining power with upstream and downstream. If the ratio is positive and larger, it means more funds are occupied by upstream and downstream users. If the ratio is negative and smaller, it means more funds are occupied by upstream and downstream users.
In 2021, 11 listed tire and wheel companies will be able to occupy upstream and downstream funds, and 7 companies will be occupied by upstream and downstream funds. The top three on the list have changed. Guizhou Tire (20.3%) replaced General Motors Co., Ltd. in the first place, General Motors Co., Ltd. (20.2%) fell back to second place, and Triangle Tire (20.1%) ranked third. Compared with the same period last year, 10 companies have enhanced their upstream and downstream bargaining power, and 8 companies have weakened their upstream and downstream bargaining power.
Among them, for the upstream, all 18 companies can occupy upstream funds, and for the downstream, all 18 companies have funds occupied by the downstream.
Figure 15: Ranking list of upstream and downstream capital occupation proportions of listed tire and wheel companies
Dimension 7: Hematopoietic ability
Indicator 15, hematopoietic ability
Enterprises mainly have two major hematopoietic points, one is operating activities, through which operating activities generate cash flow amount Reflected, the other is investing activities, reflected through cash generated from investment income. Generally speaking, the larger the scale of hematopoietic capacity, the stronger the hematopoietic capacity of the company.
The top three listed tire and wheel hub companies have changed in 2021. Sailun Tire (841 million yuan) replaced Linglong Tire in the first place, Senqilin (840 million yuan) ranked second, and Wanfeng Aowei (817 million yuan) maintained its ranking. third.
Figure 16: Ranking of hematopoietic capabilities of listed tire and wheel companies
Dimension 8: Investment capabilities
Indicator 16. Strategic investment scale
The investment of an enterprise is divided into strategic and non-strategic. Strategic investment reflects the strategy and development potential of the enterprise. , non-strategic investments are mainly short-term profit-making behaviors of enterprises.
Strategic investment mainly includes two points. One is for the construction of production capacity, which is generally listed in the report as cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets . The other is for external mergers and acquisitions or Corporate strategic equity investments are generally listed in statements as the net cash paid to acquire subsidiaries and other business units. Generally speaking, the larger the value, the greater the company's strategy-related investment and the greater its future development potential.
The top three listed tire and wheel hub companies in 2021 have not changed, with Linglong Tire (4.889 billion yuan) ranking first, Sailun Tire (2.760 billion yuan) ranking second, and Senkylin (1.488 billion yuan) third.
Figure 17: Ranking list of strategic investments of listed tire and wheel companies
Indicator 17. Capacity expansion ratio
Capacity expansion ratio = net investment in long-term operating assets ÷ long-term operating assets at the beginning of the period operating assets , reflecting the company’s investment decisions for long-term asset expansion, the company Whether to adopt an expansion, maintenance or contraction strategy. Generally speaking, the larger the value, the more obvious the company shows capacity expansion.
In 2021, there is no listed tire and wheel company whose production capacity expansion ratio is greater than 100%. The top three on the list have changed, with Disney (43.93%) replacing Megatech as the first, Senkylin (30.18%) ranking second, and Linglong Tire (25.38%) replacing Jinfei Keda as the third.
Figure 18: Ranking list of production capacity expansion ratios of listed tire and wheel companies
Dimension 9: Financing ability
Indicator 18. Financial asset-liability ratio
Liabilities mainly include financial liabilities (such as short-term loans, etc.) and operating liabilities (such as notes payable and accounts payable, etc.), among which financial liabilities reflect the company's blood transfusion ability, and operating liabilities reflect the company's blood production ability.
Financial asset-liability ratio = financial liabilities ÷ total assets, reflecting the company's dependence on blood transfusion. The larger the value, the greater the company's dependence on blood transfusions and the greater the debt repayment pressure.
In 2021, there are 7 listed tire and wheel companies with financial asset-liability ratios higher than 30%. The top three on the list have changed. Qingdao Double Star (46.93%) surpassed Jinfei Kaida to rank first, Lizhong Group (46.04%) ranked second, and Jinfei Kaida (44.64%) dropped to third place. Compared with the same period last year, the financial debt ratios of 12 companies increased and the financial debt ratios of 6 companies decreased.
Figure 19: Ranking list of financial asset-liability ratios of listed tire and wheel companies
