Dongfang Yuhong (002271): Continuing high revenue growth, focusing on changes in operating quality
Event: The company released its 2019 Interim Report and achieved 79 operating income.
08 million yuan, an increase of 40 over the same period last year.
89%; realized net profit attributable to the parent company was 9.
160,000 yuan, an increase of 48 over the same period last year.
11%; net profit after deduction to mother 6.
89 ‰, an increase of 30 in ten years.
Revenue continued to expand rapidly, and the growth of waterproof membrane and construction has improved: and to maintain the company’s continued expansion of the market and the development of large real estate customers, the market share has maintained a rapid growth trend, and the average value of waterproof materials and construction business has achieved rapid growth.Revenue 44.
610,000 yuan, a year-on-year increase of 52%, an increase over the same period last year; waterproof engineering construction business also grew significantly, achieving revenue of 10.
300 million, a 50% increase in ten years; sales of waterproof coatings21.
34 ‰, a year-on-year growth of 25%, a decrease from the same period last year.
In terms of 北京桑拿 quarters, Q2 quarterly revenue continued to grow rapidly.
The company’s Q1-Q2 revenue increased by 41.
01%, and 40.
82%, quarterly revenue continues the rapid growth trend since the second half of last year, and is expected to benefit mainly from the relatively high demand for new real estate starts and the increase in the share of large real estate customers.
The gross profit margin decreased slightly, and the quarterly gross profit growth showed an improvement trend: the company is expected to achieve a gross profit margin of 36.
58%, a decrease of 0 from the same period last year.
The gross profit margin of the waterproof membrane and construction business decreased overall.
In the first half of the year, the average price of asphalt, the main raw material for primary waterproofing membranes, has 上海夜网论坛 increased compared with the same period of the previous year. The company’s asphalt reserves in winter have hedged the impact of some price increases.
86%, an increase of 1.
73 singles are expected to benefit mainly from the impact of price and product structure adjustments.
By quarter, the company’s gross profit margins for Q1-Q2 were 34.
67%, a change of -1 compared with the same period last year.
47 and +0.
In the 25 quarters, the gross profit margin in the second quarter of Q2 further increased, which is expected to reflect the impact of product price adjustments and winter storage asphalt cost reduction effects.
Net operating cash flow decreased by 11.
600 million, the cash-to-cash ratio declined: the company’s consolidated net operating cash flow was -11.
6ppm, an increase compared to the same period last year (2018H is a net decrease of 3).
The company achieved a cash receipt ratio of 90%, a decrease of 9 percentage points from the same period of the previous year, a cash payment ratio of 104%, and an increase of 2 percentage points from the same period of the previous year.
700 million, an early improvement and a decline, of which accounts payable22.
USD 800 million, a decrease of nearly USD 800 million compared with the beginning of the year; the payment of other operating-related cash flows increased by approximately USD 700 million over the same period of the previous year, and was a net replacement for operating cash flows.
Investment suggestion: The company carried out strategic upgrades and organizational structure adjustments in the fourth quarter of 2018, and made relevant personnel adjustments accordingly. While continuing to strengthen its core competitive advantages, it sought a change of model while adjusting its business strategy to “stable operation and steady progress.”, Pursue more sustainable and excellent healthy development; at the same time, cultivate and create new business segments, and strive to achieve the transformation from “waterproof system service provider” to “building and building material system service provider”. Multi-category strategies have begun to emerge, and the company is expected to open a newOne cycle of growth.
We expect the company’s EPS to be 1 in 2019-2021.
49 yuan, corresponding to PE is 16, 12, 9 times; maintain “Buy” rating.
Risk reminders: Macro-scale policies and industry risks in the downstream real estate industry, raw material price fluctuation risks, market competition risks, and accounts receivable risks.