Tire Market – China December 2014
Executive Summary
Market Overview
Drivers and Challenges
In 20--, domestic tire production in China reached x1 mn units Chinese tire market is represented by more than x2 tire manufacturing enterprises, which contributed to nearly x3% of the global revenue from sales in 20- The market is dominated by passenger car tires, and possesses significant capacity to produce truck tires Chinese tires are highly in demand in overseas markets, creating strong export potential
Drivers:
Challenges:
Increase in Automobile Sales Replacement Demand Scope in Radialization Export Demand Availability of Low-cost Skilled Labour Improvement in China’s Road Network
Barriers to Trade Surging Costs of Raw Materials Competition from Foreign Players
Major Players
Competitive Landscape
Player A
Player B
Player C
Player D
Player E
Player F
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•Macroeconomic Indicators
•Introduction •Market Overview •Import and Export
•Drivers and Challenges •Government Initiatives •Trends
•Competitive Landscape •Market Opportunities •Strategic Recommendations
•Appendix TIRE MARKET IN CHINA 2014.PPT
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Chinese tires are characterized by their low price, but players are now focused on improving their brand image Market Overview – China (1/4) • Domestic tire production in China reached x1 mn in 20- It is expected to reach nearly x2 mn in 20--, growing at a CAGR of x3% between 20-- and 20--
• Tire production is concentrated along the east coast regions of China, with Shandong, Jiangsu and Zhejiang accounting for nearly two-third of the entire output volume in the country • Chinese tire makers are expected to put more emphasis on brand development as well as focus on exports to support domestic production
Tire Market – Size and Growth (Volume) units p1
500 400 300
n1
n2
n3
n4
n5
n6
200 100
0 20--
20--
20--
20--
TIRE MARKET IN CHINA 2014.PPT
20--
20-4
Drivers and Challenges – Summary
Drivers Increase in Automobile Sales
Challenges
Replacement Demand
Barriers to Trade
Scope in Radialization
Surging Costs of Raw Materials
Export Demand
Competition from Foreign Players
Availability of Low-cost Skilled Labour Improvement in China’s Road Network
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SAMPLE
Government Initiatives (-/-)
Government Policies and Regulations • Text • Text
Radialization Target
• Text
Permit Restriction
• Text • Text • Text
Impact on Global Players
Advantage – Text Disadvantage – Text
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Trends – Summary
Emergence of Tubeless Tire
Focus on Upscale Models
` Key Trends
Retreading of Tires
Players Focusing on Radial Tires
Advent of Green Tires
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Public: Domestic Company – Company A (1/4) Company Information Corporate Address
Company A, Street A City B State C
Tel No.
91 124 7239
Fax No.
91 124 4734111
Website
www.company.co.in
Year of Incorporation
1767
Ticker Symbol
123456
Stock Exchange
ABC
Products and Services Category
SAMPLE
Offices and Centres – China
Headquarter
Products/Services
Key People
Tires
• Off-the-road tires • Truck and bus radials • Passenger car radial tires • Tires for use in the military • Tires for use in agriculture • Tires for use in forestry
Name
Designation
Person A
MD, CEO
Person B.
Director
Person C
Director
Person D
Director
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Public: Domestic Company – Company A (2/4)
SAMPLE
Financial Snapshot Total Income
Key Ratios
Particulars
Net Profit/Loss
USD units
USD units
15,000
d
c
20,000
a
b 0
10,000 5,000
500
R1
R2
R4
R3
-500
0
-1,000
20--
20--
20--
20--
Financial Summary
y-o-y change (2013-12)
2013
2012
2011
2010
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios
The company incurred a net loss of USD d units in FY 20--, as compared to net loss of USD c units in FY 20-The company reported total income of USD R4 units in FY 20--, registering an increase of m% over FY 20-The company earned an operating margin of f% in FY 20--, an increase of g percentage points over FY 20-The company reported debt to equity ratio of d in FY 20--, a decrease of h% over FY 20--
Key Financial Performance Indicators Indicators
Value (dd/mm/yyyy)
Market Capitalization (USD mn) Total Enterprise Value (USD mn) EPS (USD) PE Ratio (Absolute)
u
v w x
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
TIRE MARKET IN CHINA 2014.PPT
Decline
9
Public: Domestic Company – Company A (3/4)
SAMPLE
Key Business Segments A
Key Geographic Segments
B
L
M
N
100%
X1
X2
X3
X4
100%
a1 b1
a2 b2
a3 b3
a4 b4
50%
Y1
Y2
Y3
Y4
50%
c1
c2
c3
c4
20--
20--
20--
20--
0%
0% 20--
20--
20--
20--
Business Highlights Description
News • Founded in 1965, Company A is located in Jiaozuo and has a total space of p1 sq. m for manufacturing
Overview
and research and development • Company A ranks x1 among the top x2 global ranking tires
• Main products of the brand consist of Henan brand, Company A brand off-the-road tire, radial off-the-
Products
Recognition
road tire, truck and bus radial tire, light truck radial tire, truck and bus bias tire, military tire, among others • Over the years, Company A has received multiple industry certifications and recognitions including ISO 9002, ISO 14001, CCC certification (China tire production compulsory certification), ISO /TS16949, among others TIRE MARKET IN CHINA 2014.PPT
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Public: Domestic Company – Company A (4/4)
SAMPLE
S
W
O
T
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Strategic Recommendations (-/-)
SAMPLE
• Focus on specific 1 due to high profitability from specific 2
Recommendation 1
• Text • Text • Text
Recommendation 2
• Text • Text
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