\u3000\u3 China Vanke Co.Ltd(000002) 271 Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) )
Event Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) released the annual report of 2021, which realized an operating revenue of 31.934 billion yuan in 2021, with a year-on-year increase of 46.96%; The net profit attributable to the parent company was 4.205 billion yuan, a year-on-year increase of 24.07%; The net profit attributable to the parent company after deducting non profits was 3.867 billion yuan, with a year-on-year increase of 25.10%.
The company’s performance grew rapidly and its leading position in the industry was stable. In 2021, the company’s operating revenue increased by 46.96% year-on-year, and the net profit returned to the parent after deduction increased by 25.10% year-on-year. The growth rate was higher than the growth rate of the industry (according to the statistics of China State Construction Engineering Corporation Limited(601668) waterproof Association, the operating revenue of waterproof enterprises in 2021 totaled 126159 billion yuan, a year-on-year increase of 13.2%, and the profit reached 7.564 billion yuan, a year-on-year decrease of 2.04%). The significant growth of the company’s performance is mainly due to the growth of the main business revenue. The sales of waterproof materials (accounting for 79.81% of the revenue) achieved a revenue of 25.487 billion yuan, a year-on-year increase of 48.11%, including a year-on-year increase of 39.98% for waterproof coiled materials and 63.30% for waterproof coatings. At the same time, under the background of high raw material prices in 2021, the company has maintained a relatively good gross profit margin by conducting cost pressure to the downstream, selecting opportunities for procurement, large-scale production and improving production efficiency. The gross profit margin of waterproof coiled material was 31.05%, a year-on-year decrease of 8.1 percentage points; The gross profit margin of waterproof coating was 34.13%, a year-on-year decrease of 7.06 percentage points. Under the circumstances of real estate downturn, poor market environment and high raw material prices, the company’s revenue and net profit still maintained growth, which can be seen that the company has obvious competitive advantages in the waterproof industry. In addition, the company is laying out the upstream industry of waterproof materials, and plans to build nonwovens, special films, VAE emulsions, VAEP rubber powder and so on. It is expected that with the successive production of upstream industrial projects, the anti risk ability of the company’s procurement will be further improved, and the gross profit margin is expected to increase. The leading position of the company in the industry is stable.
With the rapid development of the integrated company, the market share has been further improved. In the direct selling and engineering channel sector, the company continues to strengthen the development of the integrated company, focus on the local market, continue to sink the channel, fully integrate the local customers and market channel resources, and strengthen the coverage of the regional market, so as to further improve the market share of the company. In the context of the decline of real estate business in 2021, the company vigorously developed the b-end non real estate business and strengthened the sales and engineering construction in infrastructure construction, urban emerging infrastructure, industrial and mining warehouse logistics, affordable housing, new energy construction and other fields. The revenue of waterproof engineering construction in 2021 was 4.03 billion yuan, a year-on-year increase of 21.92%. In addition, in order to ensure the product supply in various regional markets with low warehousing and logistics costs, the company has strengthened the national capacity layout. At present, production logistics R & D bases have been established in North China, East China, northeast, central China, South China, northwest and southwest, and the cost advantage of the company has been further enhanced. Under the tone of steady growth in 2022, the infrastructure investment is vigorously promoted, superimposed on the company’s vigorous development of non real estate business in 2022, and the performance of the integrated company is expected to be greatly improved.
Retail business brings demand increment to the company. The company vigorously develops retail channels and C-end business through civil construction group and repair company. The civil construction group has developed rapidly. In 2021, the civil construction group achieved an operating revenue of 3.79 billion yuan, a year-on-year increase of 93%. China Minjian group has expanded its channel coverage by developing dealers and increasing specialty stores. At present, there are nearly 4000 dealers, more than 100000 distribution outlets and more than 20000 distribution outlets. In addition, the development of urbanization, Rural Revitalization and the transformation of old communities have increased the market demand for the company’s repair business. Under the background of the current era of real estate stock, the demand of the repair market is gradually increasing, and the expansion of the company’s retail channels is superimposed, and the retail business will bring incremental demand to the company.
The company takes the main waterproof business as the core, extends to the fields of civil building materials, building coatings, special mortar, building powder, energy conservation and thermal insulation, building repair and other fields, and gradually becomes the world’s leading building materials system service provider. Relying on the company’s customer resources in the waterproof business sector, the synergy of sales channels and good brand influence, the company’s non waterproof business has also developed rapidly. In 2021, the company’s other businesses achieved a revenue of 1.396 billion yuan, a year-on-year increase of 26.53%. In order to further promote the development of various businesses, the company has set up a centralized procurement division to focus on serving large-scale national strategic cooperation customers. The continuous increase of the company’s business categories and the expansion of various business scales provide strong support for the company’s future development.
As a leading enterprise in the waterproof industry, the company has obvious advantages in products, technology, brand and marketing channels. Under the background of steady growth, capital construction and real estate have brought the company market demand increment, diversified businesses develop together, further improve the company’s performance, and the company’s market share has great room for improvement. It is estimated that the net profit attributable to the parent company in 22-24 years will be RMB 5.438/67.65/8.917 billion, the earnings per share will be RMB 2.16/2.69/3.54, and the corresponding P / E ratio will be 20 / 17 / 13 times. Maintain the “recommended” rating based on the company’s good development expectations.
The risk indicates that the demand in the downstream application field is less than the expected risk, and the risk of high raw material cost.
