\u3000\u3 China Vanke Co.Ltd(000002) 271 Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) )
Revenue growth was steady, and equity incentive fees affected Q1 performance. Excluding the impact of the epidemic on the parent company, the net profit attributable to the parent company was $18.307 billion, excluding the year-on-year impact of the epidemic, and the net profit attributable to the parent company was $63.707 billion, excluding the year-on-year impact of the epidemic on the parent company, the net profit attributable to the parent company was $18.707 billion, and the net profit attributable to the parent company was $18.707 billion, excluding the year-on-year impact of the epidemic, and the net profit attributable to the parent company was $1.707 billion, representing a year-on-year increase of EPS + 2.707 billion.
The cost stress test continues and is expected to improve month on month. 2022q1 achieved a comprehensive gross profit margin of 28.28%, with a year-on-year ratio of -4.59pp and a month on month ratio of -2.03pp. It is mainly dragged down by the sharp rise in the prices of some raw materials such as asphalt and the relative lag in the price adjustment of terminal products. With the implementation of the price increase in mid March, it is expected to alleviate the cost pressure to a certain extent. The expense rate during the period was 19.06%, with a year-on-year increase of -0.8pp. The overall optimization trend continued. The sales / management / Finance / R & D expense rate was 9.94% / 7.02% / 0.53% / 1.57% respectively, with a year-on-year increase of + 0.01pp / – 0.03pp / – 0.73pp / – 0.04pp. The decrease of financial expense rate was mainly due to the increase of interest income in the current period. Benefiting from the year-on-year decline of expense rate, the impact of the reversal of asset impairment loss of 23.75 million yuan and the year-on-year decrease of credit impairment loss (171 million yuan, 297 million yuan in the same period of last year, year-on-year – 42.31%), the net interest rate achieved 4.93%, year-on-year -0.44pp.
The operating cash flow is under short-term pressure and the capital debt structure is good. In 2022q1, the company realized a net cash flow from operating activities of -4.784 billion yuan, a year-on-year increase of + 101.7%, mainly due to the preparation of goods and the payment of performance bond; By the end of 2022q1, other receivables were 3.514 billion yuan, an increase of 2.636 billion yuan over the beginning of the period, and the inventory balance was 2.447 billion yuan, an increase of 1.026 billion yuan over the beginning of the period. At the end of 2021q1, the asset liability ratio was 41.99%, with a year-on-year increase of + 4.65pp and a month on month increase of -4.36pp. The overall asset debt structure was good.
Risk tip: the decline of real estate investment exceeded expectations; Asphalt prices rose sharply; The growth of accounts receivable exceeded expectations.
Investment suggestion: the growth toughness appears again, and the medium and long-term development is still worth looking forward to. Maintaining the “buy” rating company as China’s waterproof leader, the company still showed strong growth toughness in the first quarter with complex macro situation and pressure on economic growth. In recent years, the company has broken the channel barriers through the reform of integrated operation organization, deeply cultivated and continued to sink, and cooperated with the new round of intensive laying of production capacity base, It is expected to further strengthen the core competitiveness of the main waterproof industry and improve the market share. At the same time, relying on the waterproof advantages, diversify the layout and expand the categories, and is 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.
