However, Yuanta Investment Consulting Co (元大投顧) analyst Leslie Kuo (郭建華) was cautious about the global tire market this year, especially after French tiremaker Michelin and Goodyear Tire & Rubber Co of the US both offered downbeat outlooks, given still-sluggish car demand in Europe.
In addition, there is still uncertainty in China’s replacement tire market, while rubber price declines have narrowed recently and tire prices are falling amid increasing supply, Kuo said in a report on Feb. 27, forecasting Kenda’s margin would trend downward this year.
Yuanta forecast Kenda’s revenue for this year would either remain flat from last year or fall slightly to NT$29.47 billion, with earnings of NT$3.02 billion, or NT$4.1 per share.
Kenda’s share price rose 0.81 percent to close at NT$50 on Friday. Over the past 12 months, its stock has soared 44.51 percent, while the benchmark TAIEX edged up just 0.38 percent.
Additional reporting by Camaron Kao