\u3000\u3 China Vanke Co.Ltd(000002) 271 Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) )
The growth resilience remains outstanding, and the leading position remains stable. In 2021, the company achieved a revenue of 31.934 billion yuan, a year-on-year increase of + 47.0%, a net profit attributable to the parent company of 4.205 billion yuan, a year-on-year increase of + 24.1%, a net profit deducted from non attributable to the parent company of 3.87 billion yuan, a year-on-year increase of + 25.1%, and EPS of 1.74 yuan / share, slightly higher than the previous performance express, and plans to pay 3 yuan (including tax). Under the background of overall pressure on real estate demand, relying on strong channel development and brand strength, the market share of the main waterproof industry was further improved, and the sales volume increased rapidly year-on-year, The superimposed non waterproof business segment continued to improve, and its growth and toughness continued to highlight; Among them, Q4 achieved a revenue of 9.252 billion yuan in a single quarter, a year-on-year increase of + 37.0%, a net profit attributable to the parent of 1.527 billion yuan, a year-on-year increase of + 21.3%, and a net profit not attributable to the parent of 1.399 billion yuan, a year-on-year decrease of + 32.2%.
Profitability improved month on month, and cost control continued to be optimized. In 2021, the company’s comprehensive gross profit margin was 30.53%, year-on-year -6.51pp, of which the gross profit margin of Q4 in a single quarter was 30.31%, year-on-year -0.29pp, month on month + 1.36pp, which was mainly dragged down by the sharp rise in the price of asphalt and other raw materials. The company alleviated the pressure of rising costs to a certain extent by strengthening selective procurement and scale advantages. At the same time, the company has adjusted the price of coil, coating and other main products by 10% – 20% on March 16, It is expected that the price increase is expected to further transmit the cost pressure. The expense rate during the period was 14.57%, with a year-on-year rate of -3.34pp, of which the sales / management / Finance / R & D expense rates were 6.94% / 5.15% / 0.73% / 1.75% and -1.28 / – 0.65 / – 1.02 / – 0.38pp respectively. Benefiting from the good control of costs and expenses and the further dilution brought by the superposition of scale effect, it effectively hedged part of the cost side pressure, and the net interest rate achieved 13.19%, year-on-year -2.39pp, 16.6% in Q4, year-on-year -2.01pp and month on month + 2.93pp.
The overall profit quality is good, and the operating capacity has been steadily improved. In 2021, the company realized net cash flow from operating activities of 4.115 billion yuan, a year-on-year increase of + 4.1%, including 10.398 billion yuan in Q4 single quarter, a year-on-year increase of + 114.0%. The cash flow was generally good, which mainly benefited from the company’s continuous strengthening of accounts receivable control system, strengthening sales collection and improving profit quality. The turnover rates of accounts receivable and Inventory were 16.94/4.30 respectively, compared with 8.51/3.70 in the same period of last year, and the turnover rate increased significantly. By the end of 2021, the asset liability ratio was 46.35%, year-on-year -0.39pp, and the debt ratio was generally stable.
Risk tip: the decline of real estate investment exceeded expectations; Asphalt prices rose sharply; The growth of accounts receivable exceeded expectations.
Investment suggestion: integrated operation will open up new growth, diversified layout will broaden the moat, maintain the “buy” company as China’s waterproof leader, break channel barriers through integrated operation organization reform, deepen cultivation and continuous sinking, and cooperate with the new round of intensive laying of production capacity base, which is expected to further strengthen the core competitiveness of waterproof main industry, improve market share, and rely on waterproof advantages, Diversified layout, expansion of categories and extension of business such as architectural coatings, mortar and thermal insulation materials are expected to build a deeper and wider moat. It is estimated that the EPS of 22-24 years will be 2.09/2.68/3.39 yuan / share respectively, and the corresponding PE will be 21.8/17.0/13.4x, maintaining the “buy” rating.
