\u3000\u3 China Vanke Co.Ltd(000002) 271 Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) )
The company released its annual report for 2021 on April 11, with annual revenue of 31.93 billion yuan, an increase of 47.0% at the same time; The net profit attributable to the parent company was 4.2 billion yuan, an increase of 24.1% at the same time; EPS1. 74 yuan / share. The company’s revenue and profit increased, but the gross profit margin decreased. We believe that it is mainly caused by the continuous rise of raw material prices.
Key points supporting rating
In 2021, the revenue and profit increased, the gross profit margin decreased, and the ability of cost control improved: the company’s revenue in 2021 was 31.93 billion yuan, an increase of 47.0% at the same time; The net profit attributable to the parent company was 4.2 billion yuan, an increase of 24.1%. In 2021, the company’s net cash flow from operating activities was 4.12 billion yuan, an increase of 4.1% at the same time. The company’s comprehensive gross profit margin is 30.5%, with a decrease of 6.5pct; During the period, the expense rate was 14.6%, with a decrease of 3.3pct, and the company’s expense control ability was improved.
The completion data improved the demand for waterproof materials, and the price of raw materials continued to rise, resulting in pressure on the gross profit: the year-on-year growth rate of the completed area of real estate in 2021 was significantly higher than that in the past. The improvement of the completion data led to the increase in the demand for waterproof materials. However, the increase in the price of SBS modified asphalt and crude oil led to greater cost pressure on the company, which was difficult to be fully passed on through the price increase, resulting in a decline in the gross profit margin of waterproof coiled materials and waterproof coatings in 2021, Drag down the overall gross profit margin.
The production capacity layout is improving day by day, and the company will have a lot to see in the future: in 2021, the production capacity layout of the company will be further improved, the service capacity will be improved, the cost will be reduced and the efficiency will be increased, and the economic benefits will be further improved. Under the background of marginal easing of real estate policy, the company, as a leading enterprise, will benefit from the improvement of industry concentration. Affordable housing construction, infrastructure projects and BIPV business also provide new growth points for the company. The company has a lot to see in the future.
Valuation
Considering that the price of raw materials continues to rise, we adjust the profit forecast accordingly. It is estimated that the company’s revenue from 2022 to 2024 will be 39.85 billion yuan, 49.0 billion yuan and 60.29 billion yuan; The net profit attributable to the parent company was 5.56 billion yuan, 6.87 billion yuan and 8.9 billion yuan respectively; EPS is 2.21, 2.73 and 3.53 yuan respectively. Maintain the company’s buy rating.
Main risks of rating
The rise of asphalt price squeezes profits, the project is put into operation less than expected, the competition pattern of waterproof industry worsens, and the risk of accounts receivable recovery.
