Global Tire Enterprise Value Ranking | 2025
Will tire companies make money in 2024? If you hold stocks of Chinese tire companies, congratulations, you have made money.
Comparing the stocks of listed companies in China's Shanghai, Shenzhen and Hong Kong stock markets from January 1, 2024 to December 31, 2024, the stock prices have basically risen.
If you hold them for a long time in years, you can earn up to 3 "limit boards" if you are lucky and choose the right stocks! If you hold stocks of foreign-funded tire companies, the stocks of Japanese and Korean tire companies are still good, while the stocks of European and American tire companies are not satisfactory.
Tire investment trend, China laughs and foreign capital cries
As of December 31, 2024, the total market value of 16 listed tire companies in the world is about 663.5 billion yuan, which has shrunk by more than 30 billion yuan in one year.
Investment confidence in the tire industry is slightly insufficient. However, consistent with their performance, the two leading tire companies, Michelin and Bridgestone, are still at the top of the industry in terms of market value. They are the only two tire companies in the industry with a market value of more than 170 billion yuan. The stocks of foreign-funded tire companies have failed to stimulate investment enthusiasm.
The global consumption downgrade and the decline in supporting orders have caused the stock performance of most foreign-funded tire companies to fluctuate or fall again and again, so the market value performance in 2024 is not ideal.
The total market value of Michelin and Sumitomo Rubber has been rising steadily, although Sumitomo Rubber announced in the fourth quarter that it would close its only factory in the United States. Since a solution was given and the closed factory was in a state of loss for years - timely stop loss brought confidence to investors, Sumitomo Rubber's stock price has been rising since December 2024.
Among Chinese tire companies, the market value performance of Sailun Tire, Linglong Tire and Sentury exceeded that of foreign-funded tire companies. Among them, the stock prices of Sailun Tire and Sentury, two Chinese tire companies, also increased significantly in 2024. The closing prices of the two Chinese tire companies on December 31st increased by more than 20% year-on-year compared with January 2nd.
The stock prices of Chinese tire companies soared
However, the tire company with the largest stock price increase is Universal Shares - in one year, the stock price of Universal Shares has risen by nearly 30%. Investors who have held Universal Shares since the beginning of last year should be the happiest people in the stock market at the end of last year.
Universal Shares achieved the first tire of the second phase of the Cambodian factory project in August 2024, and its Cambodian base entered a new stage of development. In addition to overseas bases, the operating rate of its domestic bases has also maintained a relatively strong level, and the domestic semi-steel tire factory has also set a record high.
In addition, in the 21st "China Brand Annual Award" in 2024, the Qianlima Tire under Universal Shares won the title of "Top Ten Influential Brands of Chinese Tires". This is the sixth consecutive year that Qianlima Tire has won this honor. The award is awarded by the World Brand Lab to recognize brands with outstanding influence in the Chinese market. Under multiple favorable conditions, the stock price of Universal Shares has continued to rise.
It can be seen that this year, most listed tire companies are leveraging overseas bases to enhance investor confidence. It is worth noting that Sailun, Linglong and Sentury, whose market value exceeds that of most foreign tire companies, are the first to step out of the comfort zone of "Southeast Asia" overseas bases and challenge the layout of tire production capacity in more distant overseas regions.
In 2024, Sailun Tire took the lead in opening up North American production capacity, and then opened up a new production capacity base in Indonesia. The larger global tire supply scale has brought confidence to investors.
Linglong Tire is not only the first tire company to invest in European production capacity, but also increased its investment in Serbia in 2024 by 4.6 billion yuan to continue to expand production; driven by this good news, Linglong Tire's market value soared from 24.9 billion yuan in August to 25.9 billion yuan in December.
Sentury is the first Chinese tire company to set foot in African production capacity. On September 30, 2024, the first batch of tire products from the Moroccan factory officially rolled off the production line. Sentury successfully realized its "Going Overseas 2.0" and continued to improve its global production capacity layout. As early as April 2024, after learning that the construction of Sentury's Morocco factory was progressing smoothly, Sentury's stock price has been on an upward trend. In October, after the official production of Sentury's Morocco factory, its stock price reached a new high this year. After the short holiday, Sentury's stock closed at more than 28 yuan per share.
In addition to actively expanding overseas production capacity, Chinese tire companies are also actively planning domestic semi-steel tire competition. Starting in 2021, the influence of Chinese tire brands in the passenger car tire market has continued to expand.
In order to seize the opportunity of the domestic product trend, tire companies have continuously enhanced their product technology strength and product supply capabilities in this track. In 2024, the second phase of the Double Coin Group (Anhui) Huili Tire Co., Ltd. project was put into production, and the passenger car tire production capacity of the single plant was increased to 10 million sets.
This is an improvement in the tire supply capacity of Double Coin in order to meet the growing global demand for passenger car tires. The improvement in product supply capacity not only enhances the competitiveness of Double Coin Group in the passenger car tire market segment, but also boosts the confidence of industry investors-tonnage determines status, and Double Coin's strength is getting stronger and stronger. At the end of 2024, the share price of Huayi Group, the parent company of Double Coin Group, increased by nearly 10% year-on-year on January 2, 2024.
In addition to the news that Chinese tire companies expanded their production capacity layout, which boosted investors' confidence, the news of mergers and acquisitions of tire companies also excited many investors. On September 24, 2024, Qingdao Doublestar announced a transaction plan to restructure Kumho Tire's equity, and finally determined to restructure Kumho Tire's equity at 4.927 billion yuan. After the transaction is completed, Kumho Tire will become a holding subsidiary of Qingdao Doublestar. According to 2023 data, the reorganized Qingdao Doublestar's operating income will exceed 26 billion yuan.
In the same month, the first phase of Doublestar's Cambodia tire factory project was officially put into production. From production capacity to brand influence, Doublestar has started its new journey in the tire industry. The investment of Chinese tire companies in 2024 can be described as "drastic". Greater ambitions for the world have also strengthened investors' confidence-in the next 30 years, global tires are more optimistic about China.
Active transactions, Chinese tires become a hot spot for investment
In 2024, the average monthly trading volume of 10 Chinese tire companies is 4.58 million lots. The tire investment boom in the stock market is divided into two periods, one is from April to June when there are continuous good news about production capacity, and the other is from September to October.
The investment environment in September released a signal that is favorable for the recovery of real estate and infrastructure. As one of the main carriers of the transportation industry, tires are naturally favored by investors. Therefore, even though the profits of some tire companies in the third quarter were unsatisfactory under high cost pressure, it did not repel investors' enthusiasm. The transaction volume of most Chinese tire companies in October increased by more than 50% month-on-month compared with the previous month.
However, such a boom gradually cooled down after the winter. Winter is the traditional off-season for transportation and real estate, so the tire industry has also been affected to a certain extent during this period. However, with the resumption of infrastructure and real estate projects in the first quarter, the tire investment boom is expected to gradually recover.
Industry investment is still cautious
So are the stock prices of Chinese tire companies overvalued now? From the perspective of static price-to-earnings ratio (the ratio of market price per share to earnings per share), it is comparable to the stock valuation level of foreign-funded tire companies. In 2024, the average price-to-earnings ratio of tire companies (including foreign-funded ones) is 12.19, and the valuation is at a low level.
Only 6 tire companies have a price-to-earnings ratio higher than the average, but it is still within the normal level. It can be seen that although investors are keen on the stocks of several tire companies, they are still cautious about overall industry investment. However, with the increased expectations for the transportation and real estate industries in 2025, the overall investment of tire companies may resume its activity, and it is reported that Zhongce Rubber, Wanli Tire, and Fengyuan Tire are all planning to go public, using the power of investment to further consolidate their competitiveness.
