\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 86 Beijing New Building Materials Public Limited Company(000786) )
Event: the company announced that in the first quarter of 2022, it realized an operating revenue of 4.61 billion yuan, an increase of 10.5% at the same time; The net profit attributable to the parent company was 560 million yuan, an increase of 7.3% at the same time; Deduct 540 million yuan of non parent net profit, an increase of 4.6% at the same time. Beixin waterproof, a subsidiary of the company, plans to invest 530 million yuan to acquire 63.28% equity of Yuanda Hongyu (Tangshan) waterproof material Co., Ltd., and increase the capital by 190 million yuan (holding 70% after completion); Invested 70 million yuan to acquire 70% equity of Yuanda Hongyu (Suzhou) Building Materials Technology Co., Ltd.
Comments:
The rise in costs led to a decline in gross profit margin and a decrease in expense rate during the reporting period: during the reporting period, the company achieved steady expansion in revenue against the background of downward real estate demand; The gross profit margin of sales was 28.4%, with a year-on-year increase of -2.5pct; The net interest rate was 12.1%, year-on-year -0.6pct. The prices of raw and fuel materials such as coal, steel and petrochemical products are still relatively high: gypsum board can partially realize cost transmission due to the strong bargaining power of the company; Due to the capital pressure of real estate developers and intensified competition, the gross profit margin of waterproof business decreased significantly year-on-year. The company’s expense rate during the period was 14.9%, with a year-on-year rate of -0.8pct, of which the sales / management / financial expense rate was 4.3% / 10.1% / 0.5%, with a year-on-year rate of -0.2 / – 0.7 / + 0.1pct; The overall cost rate is controlled at a low level.
During the industry downturn, the company increased its support to dealers: during the reporting period, the company’s net operating cash flow was – 410 million yuan, compared with 160 million yuan in the same period of last year; Accounts receivable amounted to 3.32 billion yuan, a year-on-year increase of + 38.8%. The company’s product sales are mainly based on the distribution system, and the annual credit sales policy of the credit line increase period will be implemented in the first quarter of each year. See that the net operating cash flow of the company in the first quarter of previous years was low. In 22 years, the downstream market environment was under great pressure, and the company may increase its support to dealers, resulting in a significant increase in accounts receivable.
The waterproof territory is newly added to North China, and the production capacity is expected to continue to expand: Tangshan Yuanda Hongyu ranks in the forefront of the waterproof market share in North China. This acquisition will quickly improve the company’s market share and competitiveness in North China market and make up for the short board of location. At the same time, the addition of Suzhou Yuanda Hongyu will further expand the company’s influence in the East China market. In 2021, the company’s waterproof business revenue was 3.87 billion yuan, Tangshan Yuanda Hongyu revenue was 870 million yuan, and the net profit was 110 million yuan; Suzhou Yuanda Hongyu has a 21-year revenue of 70 million yuan and a net profit of 289000 yuan. If the acquisition is completed, the company’s waterproof material industry base will reach 17, and the business scale is expected to exceed 5 billion yuan in 2022. According to the plan, the company’s waterproof material industry base will grow to 30, and the waterproof business layout will continue to be improved in the future.
Profit forecast and valuation rating: we maintain the company’s EPS of 2.37, 2.77 and 3.08 yuan in 22-24 years (since the joint restructuring has not been completed and the relevant profit contribution has not been considered), the company’s “one body and two wings” will bring long-term growth space and continue to maintain the “buy” rating.
Risk tip: the price rise of raw materials exceeded expectations, the downstream demand was less than expected, and the business expansion was less than expected. This joint reorganization failed.
