Doublestar forecasts profit rebound on Kumho integration

Chinese tire giant Doublestar Group has projected a return to profitability in the first half of 2026, driven by the completion of its major asset restructuring with South Korea’s Kumho Tire and the resulting operational synergies. In a 15 July earnings forecast, the company estimated net profit attributable to shareholders of between Yuan 110 million and Yuan 160 million (€14 million to €20 million), a sharp recovery from a Yuan 35.4 million loss in the same period of 2025. The rebound follows the finalisation of Doublestar’s asset restructuring with Kumho Tire and a related fundraising initiative, which the company says has established a comprehensive collaborative system across raw material procurement, global logistics, dedicated rubber compound production, and tire customisation. Doublestar highlighted the integration of Kumho’s strengths in the passenger car tire segment, which helped optimise its product mix by increasing the share of high-value, high-return products and strengthening supply partnerships with mainstream global automotive brands and new energy vehicle models. Despite a significant rise in raw material costs, the company reported total profit exceeding Yuan 1 billion in the first half, with both total profit and net profit attributable to shareholders rising year-on-year. Looking ahead, Doublestar plans to further leverage the Kumho brand to counter rising raw material and ocean freight costs, accelerate synergies between the two companies, and expedite factory optimisation and capacity ramp-up to enhance overall profitability and shareholder value. The earnings figures remain preliminary and unaudited.