Talk every Monday: leading performance of building materials helps stabilize the sector
Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) : the strong is always strong. The company announced that the annual revenue was 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 23.5%, slightly exceeding market expectations. In the fourth quarter, the revenue was 9.21 billion yuan, a year-on-year increase of 36.39%. Excellent operation and management level responded to the impact of raw material prices, and the net interest rate rebounded sharply in a single quarter. The net profit margin attributable to the parent company in the fourth quarter was 16.38%, up 2.87pct compared with the third quarter. Excellent cost control ability and operational risk control ability, no significant provision for large bad debts in the fourth quarter, reflecting strong management level barriers.
Keshun Waterproof Technologies Co.Ltd(300737) : starting from the pressure growth of phased profitability. The cost of raw materials and provision for bad debts impacted profitability. The net profit attributable to the parent company was between 630 million and 800 million yuan, down 29.24% to 10.15% at the same time. The corresponding performance in the fourth quarter was - 40 million yuan to 130 million yuan, down from the net profit of 200 million yuan in the third quarter. The company may rely on non real estate business to quickly get out of the dilemma. In 2022, there is a strong certainty that the capital construction end will make efforts to achieve "stable growth". Waterproof is close to the early cycle variety of construction, and the company is expected to benefit from the recovery of growth rate of capital construction investment. At present, the bad debt provision in the industry is not sufficient, and the bad debt risk is worthy of attention.
Anhui Honglu Steel Construction(Group) Co.Ltd(002541) : the newly signed contract will grow again. The company recently disclosed that the total amount of newly signed sales contracts in 2021 was about 22.832 billion yuan, a year-on-year increase of 31.46% over 2020. The annual output was 3.3867 million tons, an increase of 35.15%. According to the large orders disclosed by the company, the contract unit price increased steadily. The growth rate of newly signed contracts of the company in the first three quarters led the whole industry by more than 20 PCT, and the advantage in the fourth quarter is expected to remain. Steel structure is a high-quality track with long-term growth space. According to China Steel Structure Association, during the 13th Five Year Plan period, China's steel structure output increased from 51 million tons to 89 million tons, with an annual increase of 11.78%. By the end of 2025, the consumption of steel structure can reach about 140 million tons.
Key sub industry tracking:
Glass: as of January 14, the average price of the latest glass in China was 2054.9 yuan / ton, a month on month decrease of 1.48% compared with the previous week. The market just needs to accelerate the decline, the demand for goods preparation is OK, and some regions turn to stock out. Futures prices rebounded significantly this week, and the main contracts rose by 13.3% this week. Due to the changes in demand expectations after the Spring Festival, the futures trend is more violent, and the futures price has been higher than the spot price in some regions. The total inventory of production enterprises in key monitoring provinces was 38.3 million weight boxes, an increase of 1.7% over last week, and the growth rate slowed down. Near the end of January this year, the Spring Festival and the Winter Olympic Games will be held and enter the dual node of environmental protection control period. It is expected that the cost of replacing coal with gas in Shahe production line may rise further, which will support the price. At present, we have entered the layout window period, and continue to focus on recommending Zhuzhou Kibing Group Co.Ltd(601636) integrated leading Lutheran glass, which has entered a new growth period and has continuously increased its market share.
Cement: according to Zhuo Chuang information, as of January 14, 2022, the national average price of cement was 475.92 yuan / ton, down 1.62% from last week and up 7.19% from last year. In winter, the marginal demand of cement terminal drops, and the price continues to fall. All provinces and regions across the country have successively announced plans for staggered peak kiln shutdown in the first quarter, and the number of kiln shutdown days is generally higher than that in the same period last year. The inventory of enterprises increased slightly compared with last week. The average national clinker storage capacity ratio was 55.57%, an increase of 0.39% compared with last week. The follow-up market will focus on destocking, and the price center will still move down gradually. Last week, the cement sector underwent drastic adjustment and has returned to the state of undervaluation. Continue to recommend Anhui Conch Cement Company Limited(600585) as the leader in the cement industry and Huaxin Cement Co.Ltd(600801) with improved logic in the beneficiary areas.
Consumer building materials: the leading performance indicates that the main logic of the increase in market share remains unchanged, and the sector is expected to stabilize, but attention should be paid to the impact of bad debt provision on performance, and consumer building materials enterprises with a high proportion of leading and retail end are preferred. Lengthening the time line, the logic that the market share of consumer building materials enterprises continues to increase is still the main line of investment in the building materials industry, and the growth attribute of the industry leader has not changed. Continue to recommend Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) , Guangdong Kinlong Hardware Products Co.Ltd(002791) , Zhejiang Weixing New Building Materials Co.Ltd(002372) , Skshu Paint Co.Ltd(603737) and China Liansu.
Market review: as of the closing on January 14, the building materials sector fell 6.89% and the CSI 300 index fell 1.98%. From the sector ranking, the building materials sector ranked last among the 31 sectors of Shenwan last week, with an increase of - 4.72% year to date, ranking 25th among the 31 sectors of Shenwan.
The top five stocks rose: St Yabo, Wuhu Conch Profiles And Science Co.Ltd(000619) , Xiamen Wanli Stone Stock Co.Ltd(002785) , Chongqing Sansheng Industrial Co.Ltd(002742) , Hainan Development Holdings Nanhai Co.Ltd(002163) .
The top five stocks fell: Gansu Shangfeng Cement Co.Ltd(000672) , Luoyang Glass Company Limited(600876) , Ningxia Qinglong Pipes Industry Group Co.Ltd(002457) , Huaxin Cement Co.Ltd(600801) , Luyang Energy-Saving Materials Co.Ltd(002088) .
Investment strategy: focus on recommending China Liansu, the leader of engineering plastic pipe benefiting from infrastructure investment, Zhuzhou Kibing Group Co.Ltd(601636) with high prosperity of traditional business and entering a new growth period, Xinyi Glass, the industrial leader with continuously increasing market share, and Zhejiang Weixing New Building Materials Co.Ltd(002372) with dominant consumption attributes in building materials and Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) with strong and constant strength. It is recommended to pay attention to the cement market and steel structure leader Anhui Honglu Steel Construction(Group) Co.Ltd(002541) driven by the expected rise in infrastructure construction.
Risk tip: the demand of real estate chain declines, infrastructure investment slows down, and the price of raw materials fluctuates.
