On March 13, Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) ( Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) ) announced that the prices of some main products would be raised from March 16.
Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) stressed that the product price adjustment will help further improve the company’s sustainable profitability and is expected to have a positive impact on the company’s operating performance.
Tianfeng Securities Co.Ltd(601162) research report shows that as of last Friday, the price of OPEC package of crude oil has risen to US $117 / barrel, with the highest rise to US $128 / barrel in the middle of the week. The impact on building materials is mainly reflected in the sub industries of waterproof, coating, pipe and concrete water reducer in consumer building materials.
Since the beginning of 2022, the increase of raw materials from high to low is titanium dioxide / acrylic acid (coating raw materials) asphalt (waterproof raw materials) PVC / HDPE / PPR (pipe raw materials), and other changes are not obvious.
Tianfeng Securities Co.Ltd(601162) believes that the impact on the current gross profit margin of the enterprise may be limited. On the one hand, waterproof enterprises and water reducing agent enterprises (mainly Sobute New Materials Co.Ltd(603916) ) can make strategic reserves of raw materials, which is expected to support Q1 production. On the other hand, the current time point is the window period of new orders, and the cost pressure can be transmitted through the price increase of customers.
It is also against the above background that Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) disclosed the price increase announcement. The listed company said that based on the continuous rise in the prices of main raw materials, resulting in the continuous increase of product costs, combined with market demand and other factors, in order to better provide customers with high-quality products and services. Since March 16, the prices of some main products of the company have been adjusted. The adjustment range is expected to be as follows: the price of asphalt coiled material has been increased by 15% – 20%; Polymer coiled material increased by about 10%; Polyurethane coating increased by about 20%; Water based coatings up by about 20%; The increase of asphalt coating is about 20%.
Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) said that it would closely track the price trend of raw materials and the changes of market supply and demand, and do a good job in the price adjustment of the company’s products in time. The product price adjustment will help further improve the company’s sustainable profitability. At the same time, Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) prompted the risk that the impact of this price adjustment on sales is uncertain, and the duration of the new product price is uncertain, so there is a risk that the product price will continue to fluctuate.
Since 2022, Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) share price has fallen by 19.08%, with the latest share price of 42.63 yuan / share and the latest total market value of 107.4 billion yuan.
The previously disclosed performance forecast shows that in 2021, the company achieved a total operating revenue of 31.892 billion yuan, a year-on-year increase of 46.76%; The net profit was 4.185 billion yuan, a year-on-year increase of 23.50%. At that time, Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) said that despite the sharp rise in the price of raw materials in the reporting period, the company alleviated the pressure of rising costs by strengthening the selective procurement of raw materials, cost and expense control and the continuous exertion of economies of scale, and the above factors contributed to the improvement of the company’s profit scale.
On January 19 this year, Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) signed the project investment agreement with the people’s Government of Xinzhou District, Wuhan. The agreement stipulates that the company plans to invest 2 billion yuan in the construction of Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) Wuhan green building materials production base project and Hubei Regional Headquarters project in Wuhan. The construction content of the production base project is to promote the R & D and production projects of green high-end new materials, including but not limited to polymer waterproof coiled materials, water-based waterproof coatings, high-quality sand, sand aerated sector, special mortar, roof tile system, high-end gypsum products and so on.
