Doublestar expects profits to rebound on Kumho integration

Qingdao, China — Doublestar Group expects to return to profitability in the first half of 2026, citing the successful completion of its major asset restructuring with Kumho Tire and the growing benefits of operational synergies between the two tire makers.

In a 15 July earnings forecast, the Chinese tire manufacturer said it expects net profit attributable to shareholders of Yuan110 million-160 million (€14 - €20 million), compared with a Yuan35.4-million loss in the corresponding period of 2025.

Doublestar said the turnaround follows the completion of its "major asset restructuring with Kumho Tire and the related fundraising project." (ERJ report)

According to the company, Doublestar and Kumho have established "a comprehensive collaborative system" spanning raw material procurement, global logistics, dedicated rubber compound production capacity and tire customisation, through "complementary advantages and resource synergies."

During the first half, the company said it "fully leveraged the strengths of the Kumho brand in the passenger car tire segment."

The move, it said, helped optimise product mix by increasing the share of "high-value, high-return products" as well as improving market channels through supply partnerships with "mainstream global automotive brands and new energy vehicle models."

Despite "a significant increase in raw material costs," Doublestar said total profit exceeded Yuan1 billion during the first half, while both total profit and net profit attributable to shareholders increased year on year, resulting in a return to profit.

Looking ahead, the Chinese group said it would "actively respond to rising raw material and ocean freight costs" by further leveraging the Kumho brand.

Furthermore, it will look to accelerate synergies between Doublestar and Kumho Tire, and speed up factory optimisation and capacity ramp-up.

The measures, it added, are intended to "improve the company's overall profitability and create greater value for shareholders."

The earnings figures are preliminary and have not yet been audited.