A-share subscription | Haian Group (001233.SZ) starts subscription to provide full-steel giant tire products or services for hundreds of mines at home and abroad.

On November 14th, Hai'an Group (001233.SZ) started its subscription, with an issue price of 48 yuan per share and a subscription upper limit of 14,500 shares. It is listed on the Shenzhen Stock Exchange, with a price-earnings ratio of 13.94 times, and Guotai Junan Securities as its sponsor organization. The prospectus disclosed that Hai'an Group's main business includes the research, development, production, and sales of giant all-steel engineering machinery radial tires, as well as mining tire operation and management services. The company already has the production technology and capacity for a full range of models of all-steel giant tires (with rim diameters of 49 inches and above), and has provided all-steel giant tire products or services to hundreds of mines at home and abroad. The company's main customers include well-known domestic and foreign mining companies, mining machinery manufacturers, mining service contractors, and tire traders. According to the Frost & Sullivan industry research report, the global market size for all-steel giant tires, in terms of production volume, is expected to increase from 167,000 units in 2017 to 215,000 units in 2022, with a compound annual growth rate of 5.18%. The market continues to be in a state of supply shortages. According to Frost & Sullivan's industry research report forecast data, it is estimated that the global production of all-steel giant tires will reach 358,000 units by 2027. Overall, there is strong demand for all-steel giant tire products, and the market size is large, with significant growth potential in the future. It is reported that the competitive landscape of the global tire industry has been undergoing dynamic changes, with a clear trend of market share gradually shifting towards East Asian enterprises. The market share of international tire giants has been decreasing year by year, and the market concentration of industry-leading companies has been gradually weakening due to the rise of East Asian tire companies, with the market share of the three major international tire brands decreasing from around 56% in 2002 to around 39% in 2022. As a major tire producer in the world, China accounts for nearly half of the global production, with 60% of tires exported to various parts of the world. In recent years, with the advancement of supply-side reforms, many small and medium-sized tire production enterprises have exited the market, and the domestic tire industry's production capacity has gradually been cleared. The tire production enterprises that remain due to market competition will be able to obtain greater development space. According to the use of tires, they can be divided into road tires and non-road tires, with non-road tires mainly used in large farms, open-pit and underground mining fields, port terminals, construction industry, or other special areas. Benefitting from the continuous increase in global mining exploration and exploitation expenditures, as well as the continuous increase in global infrastructure investment efforts, the future market demand for non-road tires will continue to maintain a rapid growth trend. According to TechSci Research's forecast data, the global non-road tire market is expected to grow at an annual average rate of about 6.7% from 2021 to 2027. During the reporting period, the main business income composition of Hai'an Group is as follows: Specifically, in 2022, 2023, and 2024, the company achieved operating income of approximately 1.508 billion, 2.251 billion, and 2.3 billion RMB respectively; and net profits of approximately 354 million, 654 million, and 679 million RMB respectively. Hai'an Group mentioned in its prospectus that the net cash flow generated from operating activities in the first half of 2025 decreased significantly compared to the same period in 2024, mainly due to an increase in cash payments for commodities purchased and labor services received in the first half of 2025, totaling approximately 193 million more than in the same period of 2024. In the first half of 2024, due to adequate natural rubber inventory, the company's current procurement scale was relatively small, but in the first half of 2025, natural rubber prices fell, prompting the company to increase stockpiles to ensure order production, resulting in significantly higher purchases of natural rubber and other raw materials than in the same period last year.