I think one of the near term outcomes of the Covid-19 outbreak is that people are going to use public transport less and drive their cars more. More driving means more war and tear on tires. I also more people will use their SUVs do do more outside activities like camping with their families - think SUV tires.
The tire company I like is a Finnish company called Nokian
Nokian Renkaat Oyj (TYRES.HE NRE.HEX)
Nokian Tyres develops and manufactures premium tires for people who value safety, sustainability, and innovative products. Nokian claim to be the market leader in premium tires in the Nordic countries and Russia and are strengthening their position in North America and Central Europe.
Interestingly 71% of the tires they sell are winter tires. Probably nor surprising in Scandinavia and Russia - but it shows they have an area of specialty. I also like they are focused on the premium market and not the budget market.
I like the goals they have laid out for themselves for the next 5 years
Apart from dealing with the effects of Covid-19, apparently there were changes in the competitive nature in Russia in 2020 that will adversely effect Nokian's performance going forward. I am not sure what the nature of that change is and have not been able to find out - so it is a question mark hanging out there. But there first Quarter results for 2020 show a nasty hit:
The 2020 Q1 repport contained some interesting data comparing Nokian's competitive position to its competitors:
The return on equity (ROE) at 18.8% is good but still less than I normally look for. However it has increased over the past couple of years and based on the my understanding of the company's goals - once 2020 is out of the way (Covid-19 and Russia situation) Nokian should be able to maintain a healthy Return on Equity.
I feel good about Nokian's potential and the fact it will give my portfolio exposure to the Russian [NagaCorp Ltd. (3918.HK) is in the process of building a Casino in Russia, but primarily to serve the Chinese market] and Central European economies and have purchased the shares.
Not Investment Advice
As usual this is not investment advice. Do your own research. Consult your professional advisors.