Dongfang Yuhong (002271): Q1 quality and quality rose to fulfill promises

Dongfang Yuhong (002271): Q1 quality and quality rose to fulfill promises

Event: Oriental Yuhong released the 2019 first quarter report on April 25.

In Q1 2019, the company achieved operating income of 26.

90,000 yuan, an increase of 41 in ten years.

0%, net profit attributable to mother 1.

27 ppm, an increase of 28 in ten years.

9%, deducting non-attributed net profit1.

07%, a year-on-year growth of 41%; the performance was in line with expectations, and the strong gross margin increased in the first quarter.

The company’s performance is in line with expectations. According to our calculations, the company’s shipments of waterproof business in the first quarter increased by 45% -50%, and prices rose steadily. It is judged that the company completed price increases for large customers such as Vanke by the end of January.The cost is significantly lower than the market price, so the gross profit margin increased by 3 compared with 2018Q4.

4 up to 33.

4% (first quarter of 2018)

4 samples).

At the same time, benefiting from the streamlining of personnel brought about by the structural adjustment, management costs have only increased slightly.

3%, the effect of reducing staffing efficiency is reflected; but because 武汉夜生活网 1) the financial expenses of debt financing budget in the third quarter of 2018 increased by about 47 million yuan, and 2) the first quarter of 2019 the company accrued bad debt losses, so asset impairmentThe amount increased by about 17 million yuan, and the company’s net profit growth rate was lower than the income growth rate.

After reducing non-recurring gains and losses, revenue and profit growth have basically kept pace; the actual amount of receivables has been unprecedented, and accounts receivable has been effectively controlled.

Total accounts receivable and bills as of the first quarter of 201956.

4 ppm, after deducting commercial bills of reimbursement factors, it was basically unchanged from 2018Q4, and increased revenue by 26.

The scale of receivables on the basis of 9 billion is not expanded.

In the 杭州桑拿网 first quarter of sales of goods, labor received cash37.

92 million, a rare history exceeding 18Q4, the current sales ratio (cash flow received for sales of goods / company revenue) 1.

About 4x, refer to 1 of 2018Q1.

3x and 0 in the ten years of 2018.

The 9-fold overall improvement reflects the improvement of the company’s profit quality.

It fulfilled the company’s strategic promise of both quality and quality.

Operating cash flow is mainly stock preparation and performance bond, no need to consider: 2019Q1 company’s net operating cash flow -29.

300 million, at least 20 more in 2018Q1.

About 500 million, mainly 1) Real estate collective mining client’s performance bond in 2019 is 1.5 billion, which is basically the same as the scale in 2018, but all payments will be concentrated in Q1 in 2019, while only 300 million will be paid in 2018Q1 (the rest will be paid in Q2Q3).The security deposit is reduced by USD 1.2 billion each year, and the final restoration will not affect the annual cash flow; 2) Due to the relatively low price of raw materials in the first quarter of 2019, the company spent USD 1.2 billion on replenishment of chemical raw materials such as asphalt and SBS modified materials, increasingThe increase of US $ 700 billion and the annual net increase or increase of the performance margin by a fraction of 19 thousand are the most important part of the net incremental increase in operating cash flow, and the remaining increase mainly comes from the expansion of business scaleAnd the increase in incentive costs brought about by the performance growth in 2018; 2019 will start a new growth cycle: we believe that the company’s 2019 performance will be more certain in terms of both quality and quality: 1) benefiting from improved organizational structure, real estate infrastructure recovery and industry integration,We expect that the sales volume of large-scale companies in 2019 will achieve improved growth: 2) The role of the supply base of raw materials and price increases for key customers will be re-implemented in Q2 and Q3 gradually体At present, the gross margin improvement is expected to continue well. 3) As the proportion of waterproofing costs to construction and installation costs is reduced and the majority of corporate customers are headquartered housing companies, we believe that the improvement of the company’s receivables and cash flow is sustainable.The increase in the quarterly net operating cash flow increase is more the effect of centralized release; investment advice: We believe that the company is gradually fulfilling its promise of “steady growth and improved quality” in the market. Under similar industries, company backgrounds and operating strategies, weIt is believed that the company will start a new round of quantitative and qualitative growth in 2011, and the recent advance adjustment of the company provides investors with a good layout opportunity.

We maintain the company’s net profit attributable to the mother for 19/20 respectively.


100 million, EPS 1.


61 yuan, an annual increase of 29.

2% and 22.


The current total corresponds to an estimated 14 in 2019.

7x is below the historical average with a target price of 26.

17 yuan, maintain “Buy” rating.

Investment advice: Demand is lower than expected, and raw material prices are rising faster than expected