\u3000\u3000 Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) (002271)
The company’s net profit attributable to the parent company in 21 years is expected to be 4.19 billion yuan, a year-on-year increase of 23.5%
The company released the performance express for 21 years. The annual revenue was 31.89 billion yuan, with a year-on-year increase of 46.8%, and the net profit attributable to the parent was 4.19 billion yuan, with a year-on-year increase of 23.5%, of which the Q4 single quarter revenue was 9.21 billion yuan, with a year-on-year increase of 36.4%, and the net profit attributable to the parent was 1.51 billion yuan, with a year-on-year increase of 19.8%. The annual / Q4 single quarter net profit deducted from non attributable to the parent was 3.89/1.42 billion yuan respectively, Year on year growth of 25.7% / 33.9% respectively. On November 9, the company announced that it planned to buy back shares for the later implementation of employee stock ownership plan or equity incentive. The total capital is 1-2 billion yuan, and the price does not exceed 55.79 yuan / share. It is estimated that the number of shares to be repurchased is about 1792-3585 million shares, accounting for about 0.71% – 1.42% of the total share capital. The implementation period of share repurchase is no more than 12 months from the date when the board of directors of the company deliberates and approves the share repurchase plan. The company’s large-scale repurchase shows its firm confidence in medium and long-term development.
The market share of waterproofing was further increased, and the development of coating and retail business was better
The company’s revenue in 21 years increased by 46.8% year-on-year, including Q4’s revenue of 9.21 billion yuan in a single quarter, an increase of 8.96% over Q3. Mainly due to: 1) with the continuous upgrading of downstream customers’ demand for construction quality, the company’s advantages in product quality, service and brand are highlighted. By increasing the sinking of channels, the market share is further improved, the material sales volume has achieved rapid growth year-on-year, and the construction business income has increased; 2) Relying on the synergy of customer resources and sales channels accumulated in the main waterproof industry for many years, the revenue of the non waterproof business segment represented by architectural coatings has been rapidly increased; 3) With the continuous sinking of retail channels and category expansion, the business of the company’s civil construction group has developed well. 21h2 waterproof industry is greatly affected by the sharp decline of new real estate construction. We judge that the recovery of subsequent real estate policies is expected to gradually transform to the fundamental side. From 22q2, the front-end data of real estate or hit the bottom. At the same time, the new waterproof regulations are approaching the ground, and the rapid growth of roof photovoltaic is also expected to bring new increment.
The net interest rate declined slightly year-on-year and is expected to pick up in 22 years
In the past 21 years, the net profit margin of the company was 13.1%, down 2.5pct year-on-year, which was mainly affected by the rise in the price of raw material asphalt, and the net profit margin was under pressure. We calculated that the price of asphalt increased by nearly 20% year-on-year. However, the company alleviated the pressure of rising costs by strengthening the selective procurement of raw materials, cost control and the continuous development of economies of scale, and its profitability still maintained the leading position in the industry. We judge that the current price of raw materials may be at a high level, and with the advent of the price adjustment window at the end of the year, the price adjustment of products is expected to be implemented gradually.
The diversified layout continued to be promoted and the “buy” rating was maintained
We believe that with the increasing concentration of downstream customers and the strengthening of superimposed brand, service, channel and cost advantages, the company’s market share in the waterproof industry is expected to continue to increase. At the same time, the company is also at the forefront of the industry in terms of diversified business layout such as civil building materials, coatings, thermal insulation, mortar, repair and new energy. According to the performance express data, we adjusted the forecast of net profit attributable to the parent company for 21-23 years to RMB 4.19/52.5/6.45 billion (the previous value was RMB 4.31/54.7/6.88 billion). Referring to the 22-year average PE of the comparable company, considering the leading position of the company and the rapid volume of new business, we recognized and gave the company 30 times PE in 22 years, the target price was RMB 62.4, and maintained the “buy” rating.
Risk tip: the new construction of real estate is lower than expected, the asphalt price rebounds sharply, and the cash flow deteriorates significantly. The performance forecast is the preliminary calculation result, and the specific financial data shall be subject to the company’s disclosure announcement.
