Tires & Rubber

Bridgestone's first half of the fiscal year ending December 2026 saw revenue rise 9.7% year on year to 2.3216 trillion yen, operating profit rise 70.4% to 280.2 billion yen, and net profit rise 78.5% to 206.2 billion yen. The sharp growth in operating profit was largely a rebound effect from business and plant restructuring costs of 70.2 billion yen booked in the same period a year earlier shrinking to 11 billion yen in the current period, and adjusted operating profit came to 280.8 billion yen, an increase of just under 20% from 234.6 billion yen a year earlier. Operating cash flow in the first half was 341.8 billion yen, of which 109.2 billion yen was used to buy back shares and 73.3 billion yen for dividend payments to owners of the parent, while a further 268.5 billion yen of treasury shares were cancelled. The full-year forecast remains modest, at 4.5 trillion yen in revenue, up 1.6% from the previous year, and 340 billion yen in net profit, up 3.9%.

Sri Trang Agro-Industry Public Company Limited, or STA, is benefiting from rising natural rubber prices after heavy rain in growing areas tightened supply, pushing rubber prices on both the Tokyo and Singapore futures markets to high levels. An investor relations officer at STA told Than Hoon that if the EUDR regulation is not postponed from taking effect at the end of this year, the company is ready to immediately ramp up EUDR rubber production. The company expects sales of 30,000 to 40,000 tonnes in the third quarter of 2026, with the fourth quarter of 2026 doubling again to return to its historical average of about 60,000 tonnes per quarter, after sales of this type of rubber fell to about 17,000 tonnes in the second quarter of 2026, down from roughly 233,000 tonnes for all of 2025. Analysts at Bualuang Securities Public Company Limited estimate that third-quarter 2026 profit could soften compared with the second quarter of 2026 due to lower sales volume and gross profit from a high base, but they raised their SICOM TSR20 range for the second half of 2026 to 215 to 235 cents per kilogram from 190 to 220 cents per kilogram. Meanwhile, Finansia Syrus Securities Public Company Limited noted that the SICOM rubber price surged past 240 cents per kilogram, hitting its highest level in nearly 10 years, and recommended trading for profit with a target price of 23 baht.

Sri Trang Agro-Industry Public Company Limited, or STA, received an honorary declaration at the closing event of Phase 3 of the Industrial Sector Greenhouse Gas Emission Target Setting Promotion Project, aimed at achieving Net Zero through the Science Based Target approach. The event was organised by the Thailand Greenhouse Gas Management Organization, or TGO, together with the Centre of Excellence in Ecological-Economic Energy, Faculty of Engineering, Thammasat University. Dr. Saranthinee Mongkolrat, Sustainability Division Manager of STA, represented the organisation in receiving the honorary declaration. The event was held at the Thailand Institute of Justice recently. STA is one of 16 industrial organisations that jointly planned and set a Net Zero Pathway in line with TGO's net-zero greenhouse gas emission certification guidelines, targeting a 23% reduction in Scope 1 and 2 greenhouse gas emissions by 2030 and aiming for Net Zero in 2050. This will be achieved through improving energy efficiency, increasing the share of renewable energy, and developing greenhouse gas reduction plans at both the factory and group levels, alongside applying digital technology and AI to carbon data analysis, in order to drive a sustainable, low-carbon natural rubber supply chain at the global level.

Land and Houses Securities has initiated coverage on STA, or Sri Trang Agro-Industry, Thailand's leading natural rubber producer, with a Buy rating and a target price of 23.90 baht. The company holds roughly 35% market share and has production capacity of 3.72 million tonnes per year. The target price is based on a PER of 11.30 times, or 0.75 standard deviations above the five-year historical average, reflecting upward rubber price momentum, a recovery in gross margin, and forward EPS of 2.12 baht per share in 2027. It also expects a 2026 dividend of 1 baht per share, implying a dividend yield of about 4.8%. The research team forecasts normalised profit of 2.701 billion baht in 2026, up 734.3% from a loss of 426 million baht the previous year, driven by expected revenue of 128.517 billion baht, up 13.3%, and GPM expanding from 6.2% to 9.7%, under the assumption of an average full-year rubber selling price of 220 US cents per kilogram. For the third quarter of 2026, normalised profit is expected to grow year on year but decline quarter on quarter from the high base in the second quarter. The SICOM TSR20 rubber price rose to about 230 US cents per kilogram from 220 US cents per kilogram in the previous quarter, and EUDR rubber sales volume is expected to increase to about 30,000 tonnes from 17,214 tonnes in the second quarter, with more than 60,000 tonnes expected in the fourth quarter. The company continues to pursue a strategy of raising the share of EUDR rubber, which sells at a higher price than general rubber, targeting sales volume of 30,000 tonnes per month. Meanwhile, limited rubber supply from Indonesia and Ivory Coast, along with the effects of El Nino, leaf fall disease in Indonesia, and the reduction of rubber plantation area as land is converted to palm oil, are factors supporting rubber prices. China remains the main market, accounting for more than 60% of natural rubber business revenue, while the rubber glove business exports to more than 175 countries worldwide.

Zhongce Rubber announced in a voluntary disclosure after market close on September 10 that its 245/55R19PR ARISUN 1 Star 107V tire product has been selected as the original equipment tire for Xiaomi Auto's Pengcheng N70 model, which was recently launched. As of the announcement date, the company's cumulative shipment value for this model was approximately 3.8 million yuan, accounting for 0.0085 percent of its 2025 annual sales revenue. Zhongce Rubber stated that this supply arrangement reflects the customer's recognition of the company's research and development capabilities, product quality, and response systems, but the subsequent manufacturing and sales volume of this model remains uncertain, and actual supply volume is subject to uncertainty. The company expects that this single supply project will not have a material impact on its operating results for this year or future years. Zhongce Rubber is a leading player in China's tire industry. In the first half of 2026, it achieved operating revenue of 23.474 billion yuan, up 7.41 percent year on year. The company previously broke through in the mid-to-high-end mainstream vehicle segment for domestic tires through cooperation with HarmonyOS Intelligent Mobility and by supplying tires for the Aito M6 model.

Sailun Tire released its 2026 interim report. Total operating revenue was 20.027 billion yuan, net profit attributable to the parent company was 2.16 billion yuan, and net cash inflow from operating activities was 1.033 billion yuan. The latest asset-liability ratio was 52.46 percent, up 1.22 percentage points from the previous quarter and up 2.03 percentage points from the same period last year. Gross margin was 26.99 percent, return on equity was 9.53 percent, and diluted earnings per share was 0.66 yuan. Total asset turnover was flat year on year. Inventory turnover was 1.91 times, down 0.05 times year on year. The number of shareholders was 73,400, and the top ten shareholders held 35.20 percent of total share capital.

Sailun Tire disclosed its semi-annual report on August 30. In the first half of 2026, it achieved operating revenue of 20.027 billion yuan, up 13.88% year on year. Net profit attributable to shareholders of the listed company was 2.16 billion yuan, up 17.97% year on year. Basic earnings per share were 0.66 yuan. The company plans to distribute a cash dividend of 1.5 yuan, tax included, for every 10 shares. During the reporting period, as global capacity release and market expansion continued to deepen, the company's tire production and sales volumes, along with domestic and overseas operating revenue, rose in tandem, all reaching their best levels for the same period in history.

Sailun Tire announced on August 30 that it plans to distribute a cash dividend of 0.15 yuan per share, tax included, to all shareholders. The total payout is expected to be 493 million yuan, accounting for 22.84% of the semi-annual net profit attributable to the parent company.

Sailun Tire released its 2026 interim report. First-half net profit attributable to the parent was 2.16 billion yuan, up 18% year on year. Operating revenue was 20.03 billion yuan, up 13.9% year on year. Net profit attributable to the parent excluding non-recurring items was 2.06 billion yuan, up 12.7% year on year. Net operating cash flow was 1.033 billion yuan, up 16.9% year on year. In the second quarter, operating revenue was 10.57 billion yuan, up 15.2% year on year, and net profit attributable to the parent was 1.1 billion yuan, up 39.3% year on year. As of the end of the second quarter, total assets were 51.359 billion yuan, up 9.8% from the end of the previous year, and net assets attributable to the parent were 22.662 billion yuan, up 4.9% from the end of the previous year. The company said there were no major changes in its business operations and it continued to focus on its core tire business.

Guizhou Tyre released its 2026 interim report. Total operating revenue was 5.739 billion yuan, an increase of 546 million yuan from the same period last year, up 10.51% year on year, marking five consecutive years of growth. Net profit attributable to the parent company was 358 million yuan, an increase of 110 million yuan from the same period last year, up 44.23% year on year. Net cash inflow from operating activities was 628 million yuan, up 621.59% year on year, marking two consecutive years of growth. The company's latest asset-liability ratio was 51.38%, gross margin was 19.42%, return on equity was 3.89%, and diluted earnings per share was 0.23 yuan. The number of shareholders was 54,700, and the top ten shareholders held 28.25% of the total share capital.

Aeolus Tyre has released its 2026 interim report. Total operating revenue was 3.8 billion yuan, up 8.02% year on year, and net profit attributable to the parent company was 106 million yuan, up 3.30% year on year. Net cash flow from operating activities was negative 52.58 million yuan, an improvement of 73.01 million yuan compared with the same period last year. The company's asset-liability ratio was 48.97%, down 4.91 percentage points year on year. Gross margin was 14.28%, return on equity was 2.29%, and diluted earnings per share were 0.12 yuan. Total asset turnover was 0.45 times, and inventory turnover was 2.49 times, up 10.83% year on year. The number of shareholders was 21,500, and the top ten shareholders held 61.42% of total share capital.

General Technology released its 2026 interim report. Total operating revenue was 4.448 billion yuan, up 11.20% year on year. Net profit attributable to the parent company was 138 million yuan, up 114.84% year on year. Net cash inflow from operating activities was 841 million yuan, up 3,964.30% year on year. The company's asset-liability ratio was 57.71%, gross margin was 15.29%, ROE was 2.30%, and diluted earnings per share was 0.09 yuan, up 125.00% year on year. Total asset turnover was 0.30 times, and inventory turnover was 1.74 times. The number of shareholders was 52,400, and the top ten shareholders held 53.20% of the total share capital.

Aeolus Tyre published its 2026 interim report on August 28. First-half operating revenue was 3.8 billion yuan, up 8.0% year on year; attributable net profit was 106 million yuan, up 3.3% year on year; attributable net profit excluding non-recurring items was 105 million yuan, up 14.5% year on year; net operating cash flow was negative 52.58 million yuan, an improvement of 58.1% year on year; earnings per share were 0.1195 yuan. In the second quarter, operating revenue was 2.01 billion yuan, up 6.5% year on year, while attributable net profit was 55.44 million yuan, down 25.8% year on year. As of the end of the second quarter, total assets were 9.105 billion yuan, up 14.3% from the end of the previous year, and attributable net assets were 4.646 billion yuan, up 32.0% from the end of the previous year. The company said it actively advanced product mix upgrades and market optimization in the first half. Domestic market operating revenue grew 5.44%, overseas market operating revenue rose 12.58% year on year, and it achieved a landmark breakthrough in giant engineering radial tires. Management also noted that the company completed a private placement during the reporting period. Although earnings per share and the weighted average return on equity declined, overall strategic positioning and technological innovation made significant progress, which is expected to lay a foundation for performance growth in the second half of the year.

S Giti Tire released its 2026 interim report. First-half net profit attributable to the parent company was 70.63 million yuan, up 24.4% year on year. Operating revenue was 2.23 billion yuan, down 2.7% year on year. Net profit attributable to the parent after deducting non-recurring items was 68.75 million yuan, up 22.0% year on year. Net operating cash flow was 353 million yuan, up 52.4% year on year. Earnings per share were 0.2077 yuan. In the second quarter, operating revenue was 1.12 billion yuan, down 3.4% year on year, and net profit attributable to the parent was 23.2 million yuan, down 29.9% year on year. As of the end of the second quarter, total assets were 4.508 billion yuan, up 0.4% from the end of the previous year, and net assets attributable to the parent were 1.08 billion yuan, down 2.5% from the end of the previous year. The company mainly produces and sells automotive tires. During the reporting period, export sales and gross margin came under pressure due to rising international crude oil prices and intensifying market competition, but growth in the new energy vehicle market brought incremental demand to the tire replacement market.

Krungsri Securities has upgraded its recommendation for STA to "Buy" and raised its 2027 target price to 24.00 baht from 22.00 baht, reflecting upward revisions to normal profit estimates for 2026-2027 by 16% and 12%, to 2,940 million baht and 3,233 million baht, respectively. This is supported by higher-than-expected rubber prices and good cost control. Although the company has lowered its 2026 sales volume target to 1.45-1.50 million tons and expects a capacity utilization rate of 55%, the research house sees downside risks from first-half sales volume of only 0.70 million tons, representing 48% of the target. Meanwhile, the trend for Q3 2026 is expected to slow due to weak demand. However, the enforcement of the EUDR regulation in 2027 is seen as an upside not yet included in estimates, with the company aiming to sell about 30,000 tons of EUDR rubber per month, accounting for roughly 25% of the total projected sales volume.

General Science Technology released its 2026 half-year report. In the first half, it achieved operating revenue of 4.448 billion yuan, up 11.2% year on year. Net profit attributable to shareholders of the listed company was 138 million yuan, up 114.84% year on year. Non-GAAP net profit was 137 million yuan, up 176.79% year on year. Facing a complex and challenging industry environment, the company advanced its international expansion, steadily released capacity at the second-phase project of its overseas base, and maintained strong production and sales. At the same time, it optimized the operating model of its domestic base, focused on demand for new energy vehicles, launched the Super Eucommia Tire series, released the Dual-Effect Wujin technology achievement, deepened digital and intelligent transformation, and carried out industry-academia-research cooperation with Tsinghua University and Lenovo Group.

General Science Technology released its 2026 interim report, showing first-half net profit attributable to the parent rose 114.8% year on year to 138 million yuan, while operating revenue reached 4.45 billion yuan, up 11.2% from a year earlier. In the second quarter, operating revenue was 2.31 billion yuan, up 23.0% year on year, and net profit attributable to the parent swung from a loss of 38.38 million yuan in the same period last year to a profit of 11.58 million yuan. As of the end of the second quarter, total assets stood at 14.347 billion yuan, down 5.1% from the end of the previous year, and net assets attributable to the parent were 6.011 billion yuan, down 3.5% from the end of the previous year. The company said that during the reporting period it accelerated its international expansion, steadily released high-quality production capacity at overseas manufacturing bases, achieved substantial growth in tire production and sales, improved gross margin, and saw net operating cash flow rise significantly to 841 million yuan, up 3964.3% year on year.

Trinity Securities has raised its target price for Sri Trang Agro-Industry (STA) shares to 24.60 baht from 23.00 baht, while maintaining a speculative buy recommendation. The firm expects the company to return to profitability in 2026, driven by higher natural rubber prices. The research department forecasts 2026 profit to increase to 2.6 billion baht from 1.9 billion baht, after raising gross margin assumptions on higher average selling prices. Sales volume for 2026 is projected at 1.45-1.50 million tonnes, down from 1.6 million tonnes, due to reduced supply from heavy rainfall, particularly in Thailand where output may decline by 5% and Indonesia by up to 25%. Meanwhile, natural rubber prices remain 20% cheaper than synthetic rubber, attracting glove and tire manufacturers to use more natural rubber, despite overall tire demand growing only 1-3%. The company also announced an interim dividend of 0.50 baht per share, with the XD date on August 27, 2026, representing a dividend yield of 2.8%.

Hai'an Group released its 2026 semi-annual report on the evening of August 26. In the first half of the year, it achieved operating revenue of 1.117 billion yuan, up 3.47% year-on-year, with net profit attributable to the parent company of 184 million yuan. In the second quarter, operations rebounded notably, with operating revenue of 643 million yuan, up more than 35% quarter-on-quarter, and net profit attributable to the parent company of 131 million yuan, up about 146% quarter-on-quarter. As a leading enterprise in the all-steel giant tire sector, the company's products cover 49-inch to 63-inch all-steel giant engineering radial tires and have deeply served core domestic copper and gold mining projects such as the Tibet Julong Copper Mine and the Jiangxi Dexing Copper Mine. Its business covers China, Russia, Central Asia, Serbia, Africa, Southeast Asia, Oceania, and other countries and regions. The company is also advancing a share repurchase plan, with a repurchase price not exceeding 71.04 yuan per share. Looking ahead to the second half of the year, as phased adverse factors subside, the company's profitability is expected to recover further.

Triangle Tire announced on August 26 that it plans to distribute a cash dividend of 0.12 yuan per share, before tax, to all shareholders, with an estimated total payout of 96 million yuan. In the first half of 2026, Triangle Tire achieved revenue of 5.085 billion yuan and net profit attributable to the parent of 340 million yuan.

STA shares climbed 3.23% to 19.20 baht after analysts forecast third-quarter 2026 profit to remain strong and set a target price of 22 baht per share. Finansia Syrus Securities said STA reported second-quarter 2026 net profit of 895 million baht, up 38.7% from the previous quarter and 197% from a year earlier, with core profit at 1.15 billion baht, the highest in 17 quarters and above the research team's estimate of 763 million baht. Overall gross margin came in at 12%, above the 10.3% forecast, as the rubber glove business saw its margin rise to 17% from 10.4% on higher selling prices, while the natural rubber business posted a margin of 9.3%, up from 8.7% in the previous quarter. Finansia Syrus expects second-half 2026 profit may soften from the second quarter of 2026 due to lower rubber glove selling prices and weaker SICOM rubber prices at around 210 to 220 US cents per kilogram, but still expects third-quarter 2026 profit to remain at a good level, with a chance for SICOM rubber prices to rebound above 230 US cents per kilogram in the fourth quarter of 2026 if hot weather from the El Niño phenomenon materialises and the EUDR regulation is not postponed. STA also announced a dividend for the first six months of 2026 at 0.50 baht per share, representing a yield of 2.7%.

Finansia Syrus Securities said STA posted a second-quarter net profit of 895 million baht, up 38.7% from the previous quarter and 197% from a year earlier. Core profit came in at 1.15 billion baht, the highest in 17 quarters and above the brokerage's estimate of 763 million baht, supported by a gross margin of 12%, higher than the projected 10.3%. The natural rubber business recorded a margin of 9.3%, while the rubber glove business posted a margin of 17%. Natural rubber selling prices rose 12.4% from the previous quarter, with sales volume of 354,000 tonnes, up 3.6% quarter-on-quarter but down 10.9% year-on-year. For rubber gloves, the selling price was 22.86 dollars per 1,000 pieces, up 17.8% from the previous quarter and 13.8% from a year earlier, the highest in four years, but sales volume fell 6.6% from the previous quarter to 8,551 pieces. Finansia Syrus expects second-half profit to weaken from the second quarter due to lower rubber glove selling prices and a flat to slightly lower natural rubber business, after SICOM rubber prices softened to around 210 to 220 cents per kilogram. However, third-quarter profit is still expected to remain at a good level, and the brokerage will monitor SICOM rubber prices in the fourth quarter, which could climb back above 230 cents per kilogram if El Nino occurs and the EUDR is not postponed. Finansia Syrus is considering raising its full-year profit estimate after first-half core profit reached 1.57 billion baht, up 625.3% from a year earlier and already matching the previous full-year forecast. STA announced a first-half dividend of 0.50 baht per share, representing a yield of 2.7%, and Finansia Syrus set a target price of 22 baht per share.

Sri Trang Agro-Industry Public Company Limited, or STA, reported second-quarter 2026 net profit of 895 million baht, up 38.7 percent from the previous quarter and the highest level in four years. Revenue came in at 31.0038 billion baht, growing 15.5 percent from the previous quarter. As a result, first-half 2026 net profit reached 1.5404 billion baht, swinging from a loss in the same period last year, supported by high natural rubber prices and a pickup in customer restocking. The average TSR20 block rubber price on the SICOM market in the second quarter was 217.8 US cents per kilogram, up 13.7 percent from the previous quarter and 29.7 percent from a year earlier. The board of directors approved an interim dividend of 0.50 baht per share, with the stock set to trade excluding dividend on 27 August 2026 and payment scheduled for 11 September 2026.