\u3000\u3000 Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) (002271)
The position of waterproof leader is stable, and BIPV contributes to new growth. For the first time, give a “buy” rating
Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) is the leader in the field of waterproof materials in China. It has the leading advantages in production capacity scale and brand reputation. The improvement of industry concentration has created the leading barrier for the strong to be strong. The company has accelerated the expansion of market share through channel sinking and category expansion, and its performance growth is full of toughness. It is expected to continue to open the gap with competitors, At the same time, TPO photovoltaic integration is expected to open up the second growth curve and is optimistic about the company’s sustainable growth potential. We expect that the net profit attributable to the parent company will be 4.19/56.9/7.21 billion yuan in 2021, 2022 and 2023 respectively, with a year-on-year increase of 23.5% / 36% / 26.5%; EPS is 1.66/2.26/2.86 yuan respectively, corresponding to the current share price, and PE is 29.8/21.9/17.3 times. For the first time, give a “buy” rating.
The market space of waterproof industry is large, and the concentration is accelerated
The market of waterproof industry has reached more than 100 billion, but the pattern is relatively scattered and the competition is fierce. Since 2016, the concentration of the waterproof industry has been increasing, the Matthew effect has been prominent, and the leader is always strong. The main driving factors include: industry regulation and standard improvement; The concentration of downstream real estate enterprises has increased; Rising prices of raw materials raise costs. The standard raising of waterproof industry has stepped into the accelerated stage. The elimination of backward materials will accelerate the clearance of small and medium-sized enterprises in the industry and further improve the concentration. Leading enterprises with polymer material technology can seize the stock market share; On the other hand, the requirements of the new specification for the service life, laying layers and thickness of waterproof materials are improved, which will help to increase the demand for waterproof materials and bring increment to the industry market.
Business volume and quality coexist, showing endogenous competitiveness
The company’s waterproof material production capacity is far ahead in the industry, has obvious scale advantages, and the production capacity layout has entered an accelerated period. It has reached cooperation with local governments to invest in the construction of production base projects, and the radiation range of production capacity has continued to expand. After more than 20 years of development, the company has accumulated sufficient high-quality customer resources, brand awareness and moat advantages. At the same time, the company actively carried out business quality improvement, promoted organizational restructuring and channel reform, and accelerated channel sinking through integrated company reform and partner system to expand market share. In terms of collection, the company continued to make efforts to control accounts receivable, and the quality of income and profit continued to improve, which was significantly better than the industry average, highlighting the endogenous competitiveness.
The layout industry extends, and there are still growth drivers outside the main industry
The company actively promotes the transformation from a single comprehensive service provider of waterproof system to a service provider of building materials system, carries out category expansion based on the main business of building waterproof, and extends its product business, including civil building materials, building repair, nonwovens, building energy-saving materials, special mortar, building decoration coatings, building powder, etc. the product business system is becoming more and more perfect and the platform is becoming more and more obvious, Coordinated development with the main business to supplement the growth power of C-end. At the same time, under the background of double carbon target, the installation layout of distributed photovoltaic is accelerated, and the integration of TPO photovoltaic ushers in the tuyere. Relying on the technical product advantages in the field of TPO waterproof, the company actively carries out strategic cooperation with photovoltaic enterprises, which is expected to further open the market space.
Risk tip: the prosperity of real estate is declining; Rising raw material costs; Vicious competition in the industry; Bad debt of accounts receivable
