Triangle Tire tops ROE ranking list in 2016 among tire makers

Triangle Tire, Linglong Tire and S Giti were the top three in terms of ROE (return on equity) in 2016 among the nine listed tire companies in China.

Triangle Tire was “the most satisfying tire maker for investors” in both 2015 and 2016.

In 2016, the ROE of S Giti declined 3.31 percent from 2015, with its position down from the second to the third.

Generally, the majority of the listed tire makers saw a lower ROE in 2016, except Sailun Jinyu, which saw an increase of 3.82 percent, and Qian Tire A, with an increase of 7.57 percentage points.

Sailun Jinyu rose to the fifth place, following the fourth one of Jiangsu General Science Technology. Each of the two recorded a ROE of 8-10 percent.

Aeolus Tire, Qingdao Double Star and Huayi Group ranked the sixth, the seventh and the eighth, respectively, with a ROE of 2-4 percent last year.

Linglong Tire and Sailun Jinyu each gained more than 10 billion yuan of operational revenues in 2016. The overseas business contributed about 78.4 percent to the revenues of Sailun Jinyu.

The domestic market contributed some 92 percent to the revenues of Jiangsu General Science Technology last year, and 60.4 percent to that of Qian Tire A.

Linglong Tire, Aeolus Tire, Triangle and S Giti attached importance to both the domestic and the overseas markets. Linglong, Triangle and S Giti relied a bit more on the overseas market, while Aeolus slightly favored the domestic market.

The gross profit ratio of the overseas business of Linglong, Triangle and S Giti each surpassed 23 percent in 2016.

Qingdao Double Star realized an increase of 40 percent in its 2016 operational revenues, higher than any other listed tire maker in China.

Aeolus Tire saw a 5.33-percent decline in revenues out of the domestic market, and a 9.87-percent drop in revenues from the overseas market, while the company’s operational costs only edged down by a small range. Aeolus recorded a ROE of 3.78 precent in 2016, down 2.57 percent from 2015.