Shandong Linglong Tyre vs Sailun Jinyu: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

Shandong Linglong Tyre Co Ltd (601966.CG)

Q3 202614 Jul – 9 Oct 2026

▲2▼2

Linglong's profit crushed by FX and rubber costs, buybacks and price hikes offset

H1 profit collapses on FX loss First-half 2026 net profit fell 87% to 110 million yuan, and non-GAAP profit plunged 99.3% to 5.55 million yuan. The main cause was a 342 million yuan exchange loss as the yuan strengthened, versus a 691 million yuan gain a year earlier. This weak result weighs on the stock.
The profit collapse is the core negative force driving the stock down.
Rubber costs surge, squeezing margins Natural rubber prices hit a nine-year high, up over 32% this year, while carbon black and synthetic rubber also jumped. Raw materials are over 70% of tire costs, and these increases have outpaced selling prices, pressuring Linglong's gross margin. This cost squeeze hurts earnings.
Rising raw material costs are a major ongoing headwind for profitability.
Tire price hikes help offset costs Linglong joined the fourth round of industry-wide tire price increases this year, raising all product categories by 2% to 5%. These hikes aim to pass rising raw material costs to customers, which could support revenue and margins if demand holds.
Price increases are a positive offset to cost inflation and support earnings.
Buybacks signal confidence Linglong repurchased 5.54 million shares for about 60 million yuan by September 30, up from 1.85 million shares in July. Buybacks reduce shares outstanding and show management's belief that the stock is undervalued, offering some price support.
Share repurchases are a positive capital action that can support the stock price.

August 202614 Jul – 9 Oct 2026

▲2▼2

Linglong's profit crushed by FX and rubber costs, buybacks and price hikes offset

H1 profit collapses on FX loss First-half 2026 net profit fell 87% to 110 million yuan, and non-GAAP profit plunged 99.3% to 5.55 million yuan. The main cause was a 342 million yuan exchange loss as the yuan strengthened, versus a 691 million yuan gain a year earlier. This weak result weighs on the stock.
The profit collapse is the core negative force driving the stock down.
Rubber costs surge, squeezing margins Natural rubber prices hit a nine-year high, up over 32% this year, while carbon black and synthetic rubber also jumped. Raw materials are over 70% of tire costs, and these increases have outpaced selling prices, pressuring Linglong's gross margin. This cost squeeze hurts earnings.
Rising raw material costs are a major ongoing headwind for profitability.
Tire price hikes help offset costs Linglong joined the fourth round of industry-wide tire price increases this year, raising all product categories by 2% to 5%. These hikes aim to pass rising raw material costs to customers, which could support revenue and margins if demand holds.
Price increases are a positive offset to cost inflation and support earnings.
Buybacks signal confidence Linglong repurchased 5.54 million shares for about 60 million yuan by September 30, up from 1.85 million shares in July. Buybacks reduce shares outstanding and show management's belief that the stock is undervalued, offering some price support.
Share repurchases are a positive capital action that can support the stock price.

Latest14 Jul – 9 Oct 2026

▲2▼2

Linglong's profit crushed by FX and rubber costs, buybacks and price hikes offset

H1 profit collapses on FX loss First-half 2026 net profit fell 87% to 110 million yuan, and non-GAAP profit plunged 99.3% to 5.55 million yuan. The main cause was a 342 million yuan exchange loss as the yuan strengthened, versus a 691 million yuan gain a year earlier. This weak result weighs on the stock.
The profit collapse is the core negative force driving the stock down.
Rubber costs surge, squeezing margins Natural rubber prices hit a nine-year high, up over 32% this year, while carbon black and synthetic rubber also jumped. Raw materials are over 70% of tire costs, and these increases have outpaced selling prices, pressuring Linglong's gross margin. This cost squeeze hurts earnings.
Rising raw material costs are a major ongoing headwind for profitability.
Tire price hikes help offset costs Linglong joined the fourth round of industry-wide tire price increases this year, raising all product categories by 2% to 5%. These hikes aim to pass rising raw material costs to customers, which could support revenue and margins if demand holds.
Price increases are a positive offset to cost inflation and support earnings.
Buybacks signal confidence Linglong repurchased 5.54 million shares for about 60 million yuan by September 30, up from 1.85 million shares in July. Buybacks reduce shares outstanding and show management's belief that the stock is undervalued, offering some price support.
Share repurchases are a positive capital action that can support the stock price.

Sailun Jinyu Group Co Ltd (601058.CG)

Q3 20266 Aug – 9 Oct 2026

▲2▼1

Sailun's profit jumped, but rubber costs are squeezing margins

First-half profit and dividend beat expectations Sailun's first-half net profit rose about 18% to 2.16 billion yuan, with second-quarter profit up 39%, and it will pay a cash dividend of 0.15 yuan per share. Strong earnings and cash returned to shareholders support the stock price.
The interim results and dividend are the main new company-specific facts that lift the shares.
Tire price hikes help offset costs Sailun and other leading tire makers raised prices 2% to 5% across all products in the industry's fourth round this year. Higher selling prices can protect profit if they stick, though they may not fully cover raw material inflation.
Pricing power is a key force behind future earnings and the stock's direction.
Rubber costs at nine-year high pressure margins Natural rubber hit a nine-year high, up over 32% this year, and other raw materials also jumped. These inputs are over 60% of tire costs, and analysts warn cost increases are outpacing selling prices, squeezing industry-wide gross margins.
This is the main counterweight that could cap profit growth and weigh on the stock.
Controller's share donation cuts stake slightly A concert party of actual controller Yuan Zhongxue donated 37.86 million shares (1.15% of capital) worth about 501 million yuan to a university foundation. Control and operations are unchanged, but the combined holding falls from 26.30% to 25.15%, a minor overhang.
It is a new capital-structure event that could affect sentiment even if control is unchanged.

September 20266 Aug – 9 Oct 2026

▲2▼1

Sailun's profit jumped, but rubber costs are squeezing margins

First-half profit and dividend beat expectations Sailun's first-half net profit rose about 18% to 2.16 billion yuan, with second-quarter profit up 39%, and it will pay a cash dividend of 0.15 yuan per share. Strong earnings and cash returned to shareholders support the stock price.
The interim results and dividend are the main new company-specific facts that lift the shares.
Tire price hikes help offset costs Sailun and other leading tire makers raised prices 2% to 5% across all products in the industry's fourth round this year. Higher selling prices can protect profit if they stick, though they may not fully cover raw material inflation.
Pricing power is a key force behind future earnings and the stock's direction.
Rubber costs at nine-year high pressure margins Natural rubber hit a nine-year high, up over 32% this year, and other raw materials also jumped. These inputs are over 60% of tire costs, and analysts warn cost increases are outpacing selling prices, squeezing industry-wide gross margins.
This is the main counterweight that could cap profit growth and weigh on the stock.
Controller's share donation cuts stake slightly A concert party of actual controller Yuan Zhongxue donated 37.86 million shares (1.15% of capital) worth about 501 million yuan to a university foundation. Control and operations are unchanged, but the combined holding falls from 26.30% to 25.15%, a minor overhang.
It is a new capital-structure event that could affect sentiment even if control is unchanged.

Latest6 Aug – 9 Oct 2026

▲2▼1

Sailun's profit jumped, but rubber costs are squeezing margins

First-half profit and dividend beat expectations Sailun's first-half net profit rose about 18% to 2.16 billion yuan, with second-quarter profit up 39%, and it will pay a cash dividend of 0.15 yuan per share. Strong earnings and cash returned to shareholders support the stock price.
The interim results and dividend are the main new company-specific facts that lift the shares.
Tire price hikes help offset costs Sailun and other leading tire makers raised prices 2% to 5% across all products in the industry's fourth round this year. Higher selling prices can protect profit if they stick, though they may not fully cover raw material inflation.
Pricing power is a key force behind future earnings and the stock's direction.
Rubber costs at nine-year high pressure margins Natural rubber hit a nine-year high, up over 32% this year, and other raw materials also jumped. These inputs are over 60% of tire costs, and analysts warn cost increases are outpacing selling prices, squeezing industry-wide gross margins.
This is the main counterweight that could cap profit growth and weigh on the stock.
Controller's share donation cuts stake slightly A concert party of actual controller Yuan Zhongxue donated 37.86 million shares (1.15% of capital) worth about 501 million yuan to a university foundation. Control and operations are unchanged, but the combined holding falls from 26.30% to 25.15%, a minor overhang.
It is a new capital-structure event that could affect sentiment even if control is unchanged.