Dongfang Yuhong (002271): Fast-growing revenue, cash flow improved significantly

Dongfang Yuhong (002271): Fast-growing revenue, cash flow improved significantly

The incident reports the fact that the company achieved an operating income of 140.

0.5 billion, an increase of 36.

46%; net profit attributable to mother 15.

08 million yuan, an increase of 21.


The revenue growth rate has increased quarter by quarter, and the effective rate management and control company achieved Q4 acceptance in the single quarter of 2018.

4.5 billion, an increase of 42.

82%, quarterly, the company’s single quarter revenue growth rate increased, Q1, Q2, Q3 2018 quarterly quarterly growth rate was 27.

16%, 31.

84%, 38.


2018Q4 single quarter gross profit margin of 30.

71%, a decrease from the third quarter of a single quarter, achieving net profit attributable to mothers3.

USD 9.4 billion, with a slight increase in subsidies, may be related to the company’s eventual rush in engineering business and high raw material prices.

Initially, the company’s expense management and control capabilities have been enhanced, especially the management expense ratio has performed well. After adjusting back to R & D expenses, the management expense ratio will be 10 in 17 years.

18% dropped to 8.


The financial expense ratio increased slightly, which was related to the increase of the company and the increase of factoring expenses.

The overall period expense ratio was 22 in 2017.

65% fell to 21 in 2018.


The overall gross margin and net profit margin were 34.

59% and 10.

76%, a slight decrease previously, is expected to be mainly related to rising costs.

Coil coatings are in full swing, focusing on increasing the market share report. The company ‘s sales of waterproof products have grown rapidly, with waterproof coils achieving revenue of 73.

1.9 billion, an annual increase of 37%; waterproof coatings realized revenue of 39.

7.6 billion, an annual increase of 34%; engineering construction business realized income 19.

510,000 yuan, an increase of 38% in ten years.

The reporting company continued to develop its business scale. It invested in the construction of production bases in Hangzhou Jiande, Henan Puyang, Qingdao Laixi, 杭州桑拿 Sichuan Deyang and other places to improve the company’s waterproofing, thermal insulation, architectural decorative coating, mortar and other project layouts.Due to factors such as operating and product standard improvement, some small waterproof companies have withdrawn from the market. As a leading company in the industry, the company has gradually increased its market share.

The cash flow has improved significantly. It is expected to increase the company’s receivables for the development report, and the cash flow situation will further improve. The company’s account receivable amount at the end of the reporting period is 45.

11 ppm, a five-year increase of 5.

3%, the growth rate is significantly lower than the growth rate of revenue, accounts receivables accounted for 32% of total assets at the end of 2017.

15% dropped to 22.

95%, the company’s account recovery is good, and other receivables supplemented a significant reduction, from 7 at the end of the first quarter of 2018.

7.8 billion to 2.

24 billion.

The cash flow situation has improved correspondingly. With the reported scale, the company’s net cash flow from operating activities was 10.

140,000 yuan, a significant increase of 1386 each year.48%, the indicator further matches the amount of net profit attributable to the mother, indicating that the company’s cash situation has improved significantly.

The company is expected to continue to promote the optimization of its structure internally, tap the potential of channels to improve efficiency, further improve the quality of external operations, and continue to expand its business scope. We believe the company is expected to achieve higher quality development in the future.

The profit forecast takes into account the increase in costs, and the company’s net profit attributable to mothers for 2019 and 20 will be increased from 18.

8.3 billion, 26.

580,000 yuan adjusted to 18.

7.5 billion, 22.

29 trillion, corresponding to EPS by 1.

26 yuan, 1.

78 yuan adjusted to 1.

26 yuan, 1.

49 yuan, corresponding to PE is 16.

8X, 14.

1X, maintaining the “overweight” rating.

Risk reminder: the price of raw materials such as asphalt has risen sharply; bad debts of accounts receivable have increased significantly; demand for waterproof materials has increased