The Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) (002271) event Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) released the annual performance express in 2021. In 2021, the operating revenue reached 31.892 billion yuan, a year-on-year increase of 46.76%; The net profit attributable to the parent company was 4.185 billion yuan, a year-on-year increase of 23.50%; The net profit attributable to the parent company after deduction was RMB 3.885 billion, a year-on-year increase of 25.68%.
In the fourth quarter of 2021, the company achieved an operating revenue of 9.21 billion yuan, a year-on-year increase of 36.38%; The net profit attributable to the parent company was 1.51 billion yuan, a year-on-year increase of 19.7%; The net profit attributable to the parent company after non deduction was RMB 1.42 billion, a year-on-year increase of 33.95%. It is not easy to maintain high growth in revenue and net profit in the fourth quarter, which shows that the company can still rely on the company’s strong brand influence and multi-level marketing channel layout to achieve product sales growth under the poor market environment. At the same time, the company’s non waterproof business and civil construction business are developing well, further driving the rapid growth of the company’s revenue.
The market share was further improved, the leading position in the industry was stable, and the company’s revenue maintained a growth rate of 46.76% in 2021, much higher than the growth rate of the industry. According to the statistics of the building waterproof Association, in the first half of 2021, enterprises above Designated Size in the waterproof industry realized a total operating revenue of 56.991 billion yuan, a year-on-year increase of 26.2%, and a net profit of 2.893 billion yuan, a year-on-year decrease of 12.7%. The market share of the company has been further improved, and the leading position in the industry is stable. At the same time, the company has strengthened the national layout and built or expanded production bases in Beijing, Guangdong, Hainan, Jilin, Jiangsu, Hebei, Hunan, Chongqing and other places, including the construction project of polymer waterproof coiled material and the transformation and upgrading project of modified asphalt waterproof coiled material and asphalt coating automatic production line. With the improvement of industry standards and the gradual promotion of new waterproof materials, it is expected that the company will continue to maintain its leading position in the industry.
Multi business development has effectively promoted the diversified development of the company’s business. In addition to building waterproof business, it also involves building coatings, thermal insulation materials, special mortar, building repair, nonwovens and other fields. Benefiting from the brand advantages and channel sales advantages established by the company’s waterproof business sector, other business areas of the company quickly entered the market and were recognized by customers. At present, in addition to the first priority rate of waterproof business by real estate developers, architectural coatings, building repair, mortar and thermal insulation materials have been recognized by the top three priority rates of real estate developers. The expansion of business sector provides strong support for the development of the company.
As a leading enterprise in the waterproof industry, the company has obvious advantages in products, technology, brand and marketing channels. With the improvement of industry standards and industry concentration, the market share of the company still has great room for improvement. It is estimated that the net profit attributable to the parent company in 22-23 years is RMB 5.486/6.966 billion, and the earnings per share in 22-23 years is RMB 2.18/2.76, with a year-on-year increase of 31% / 27%, corresponding to a P / E ratio of 22 times / 17 times. Maintain the “recommended” rating based on the company’s good development expectations.
Risk warning: the demand of downstream application fields is lower than the expected risk; Risk of high raw material costs.
