Dongfang Yuhong (002271): rapid growth in operating income and improved profit quality

Dongfang Yuhong (002271): rapid growth in operating income and improved profit quality

Incident company released the first quarter report of 2019, the number of reports, the company realized operating income26.

86 ppm, an increase of 41 in ten years.

01%; net profit attributable to mother 1.

27 ppm, an increase of 28 in ten years.


The operating income increased rapidly, and the gross profit level improved compared to the previous quarter. The company achieved rapid growth in the first quarter and achieved a single quarter revenue of 26.

86 ppm, an increase of 41 in ten years.

01%; single quarter achieved gross margin of 34.

48%, down by 1 every year.

The 47 averages were mainly due to the improvement of the cost center, and the gross profit margin increased by 3 in 2018Q4 before the improvement.

77 singles are expected to be related to the rebound in product prices and changes in business structure.

In terms of period expenses, the rate of management expenses (including R & D expenses) decreased by 3.

42 total, finance cost expense 2.

20%, further improvement, related to the company’s increase in interest rate denials; the amount of asset impairment losses increased significantly, and the company’s repayment of bad debts.

Increase capital investment to seize the market, expect the cash flow situation to improve. The company’s revenue growth momentum was strong in the first quarter, and continue to increase capital investment to seize the market. The company’s other receivables at the end of the reporting period increased by 778% from the beginning of the year, and increased from one year to the end of Q1 2018153%, 武汉夜生活网 related to the increase in the performance bond paid by the company. The increase in the performance bond guarantees the release of the company’s subsequent income. At the same time, it is expected that the company reports an increase in the speed of stockpiling of raw materials, and the increase in the ending balance of the company’s monetary funds with the payment of the performance bond.Is 12.

8.9 billion, a decrease of 73 from the beginning of the period.


The company’s net cash flow from operating activities in the first quarter was -29.

5.6 billion, a decrease of 20 per year.

55 megabytes. It is expected that the company’s cash flow situation may improve after the initial quarterly matching of income and receipts in the subsequent quarters.

Continue to consolidate the market scale and gradually develop the expected market concentration of the waterproof material industry. The market concentration is shrinking, competition is expanding fiercely, and low-price competition is not conducive to the improvement of the profitability of waterproof enterprises. The improvement of industry standardization is conducive to the concentration of market resources for large enterprises.Benefit from large enterprise replacement.

The company is expected to continue to promote the optimization of its structure internally, tap the potential of channels to improve efficiency, and we believe that the company is expected to achieve higher quality development in the future.

The profit forecast takes into account the rapid growth of the company’s revenue, and the company’s net profit attributable to its mother for 2019 and 20 will be increased from 18.

7.5 billion, 22.

29 ppm was adjusted to 19.

1.3 billion, 22.

820,000 yuan, corresponding to EPS from 1.

26 yuan, 1.

49 yuan adjusted to 1.

28 yuan, 1.

53 yuan, corresponding to 14 for PE.

6X, 12.

2X, maintaining the “overweight” rating.

Risk warning: the price of raw materials such as asphalt has risen sharply; bad debts of accounts receivable have increased significantly; demand for waterproofing materials has piled up.