On March 14 Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) issued an announcement announcing the price increase. Based on the continuous rise in the price of main raw materials and the increasing cost of products, the company decided to increase the price of some main products from March 16.
“In the current severe market environment, it is difficult to raise the price of goods and the irreversible rise of labor costs. These situations are superimposed with the rise in the price of raw materials, which makes enterprises feel ‘Alexander’.” Wang Jianguo, the general initiator of China design Dean base, told the Securities Daily.
main products price increase
According to Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) announcement, the main products of the price increase include: the increase of asphalt coiled material 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 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.
Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) belongs to the waterproof building materials industry, a subdivision of the building materials industry. Its main products include building waterproof materials, building decoration coatings, special mortar and building energy-saving materials Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) is not the first company to announce price increases in the year. As early as the end of February, listed companies announced price adjustments of their products in different ranges. The rise in the price of raw materials is the main reason why industry companies announced the rise in prices.
However, Hu Zhongxin, Secretary General of China furniture and building materials Decoration Association, told the Securities Daily that waterproof building materials are “necessities” of the building materials industry, and the price rise has little impact on product sales. Many securities companies are also optimistic about the development of waterproof building materials industry Sealand Securities Co.Ltd(000750) released the research report, saying that the waterproof industry has broad development prospects and the market stock is increasing. After the introduction of new industry standards, the market is expected to undergo structural adjustment and further improve the concentration. Under the background of carbon neutralization, photovoltaic roofing is gradually emerging. The service life of the waterproof layer of the photovoltaic house has become a new growth point of the waterproof industry.
“The response of waterproof building materials enterprises should return to ‘reducing cost and increasing efficiency’ and ‘increasing revenue and reducing expenditure’.” Wang Jianguo, the general initiator of China design Dean base, told the Securities Daily, “we should deeply integrate with the upstream and downstream of the industry to ‘keep warm together’ and deeply study and meet the new needs of customers in the new era.”
performance rose against the trend
The rise in upstream prices is not just this year. The price of raw materials in the waterproof building materials industry will show a sharp upward trend in 2021.
“The rise in the price of raw materials will have a great impact on small and medium-sized enterprises, which may lead to their inability to support or quality problems.” Hu Zhongxin, Secretary General of China furniture and building materials Decoration Association, said in an interview with the reporter of Securities Daily, “but for first-line brands, it will not have much impact. On the one hand, it is because of the strong bargaining power of first-line brands; on the other hand, it is because of branding, and consumers’ brand awareness is increasing. It can be seen that the sharp decline of second and third tier brands is very serious.”
Faced with the pressure of price rise, Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) performance still achieved contrarian growth. According to the 2021 performance express released by the company, the company’s revenue during the reporting period reached 31.892 billion yuan, a year-on-year increase of 46.76%; The net profit attributable to shareholders of listed companies reached 4.185 billion yuan, a year-on-year increase of 23.50% Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) said that compared with the same period last year, the sales volume of the company’s products has achieved rapid growth, and the scale of material sales business and construction service business has increased. 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 control and the continuous exertion of economies of scale.
At the beginning of November 2021, Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) also issued a share repurchase plan for the later implementation of employee stock ownership plan or equity incentive. The total amount of funds used for repurchase this time shall not be less than 1 billion yuan, not more than 2 billion yuan, and the repurchase price shall not exceed 55.79 yuan / share. According to the latest announcement on repurchase progress issued by the company, as of February 28, Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) has repurchased 4887800 shares, with a total transaction amount of 212 million yuan.
