CSM – Trying to enter the automobile tyre business, again

January 25, 2017

■ CSM’s new semi-steel tyre plant is about to begin producing tyres for export to the US, but we are not clear how competitive these products will be in the US market.
■ Rubber accounts for about half of CSM’s COGS, and world rubber prices have rebounded 60% from their Sep 2016 bottom.
■ We cut FY17 EPS forecast by 49% on disappointing results and a weak outlook for radial tyres. We reduce our TP and downgrade CSM from Add to Hold.

CSM_2017.01.25

CSM – Trying to enter the automobile tyre business, again

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