Dongfang Yuhong (002271) Annual Report 2018 Review: Strong Revenue Growth, Steady Growth from Volume to Quality
The company’s performance growth in 2018 increased by 21.
8%, earnings per share 1.
01 yuan From January to December 2018, the company achieved operating income of 140.
500 million, an increase of 36.
5%, net profit attributable to shareholders of listed companies 15.
1 trillion, with the same increase of 21.
8%, earnings per share 1.
01 yuan; the company’s revenue in the fourth quarter was 47.
500 million, an increase of 42.
8%, net profit attributable to shareholders of listed companies3.
9 trillion, the same increase of 6.
4%, earnings per share are 0.
Profit distribution plan: RMB 3 cash dividends (including tax) will be distributed for every 10 shares.
Rising raw material prices, squeezed profitability reports, the company’s comprehensive gross profit margin was 34.
6%, a year 17 down 3.
1 unit; sales rate, management rate and financial rate are 12 respectively.
4%, change 0 every year.
4 averages, period rate 21.
9%, a year and 17 years down 0.
In the fourth quarter, the company’s comprehensive gross profit margin was 30.
7%, a decline of 17 years every year 2.
6 units; sales rate, management rate and financial rate are 12.
4%, 杭州桑拿网 an increase of 2 per year.
6 and 0.
3 digits, period rate is 23.
9%, rising by 3 every 17 years.
In 2018, the company’s main raw material asphalt cracks increased in price, resulting in a decline in profitability; receivables grew faster, causing interest-bearing liabilities to increase and financial costs to rise.
However, since the fourth quarter, the company has actively responded to market conditions, adjusted its business strategy and organizational structure, and vigorously developed a “partner” system to optimize its marketing network. It is expected that the operating efficiency of the follow-up company will increase, and sales and management fees will decrease.As costs increase, the company raised prices in 19 years, and it is expected that subsequent profitability will also improve. Revenue growth was strong. From the perspective of volume-to-quality and steady development of products, the proportion of revenue from waterproof coils, waterproof coatings and waterproof construction was 52.
3% and 13.
9%, revenue growth rate was 37.
8% and 37.
7%, strong growth.
The company strategically repositioned “building and building material system service providers”, deepened the integration of direct sales and engineering channels, and established the Engineering and Building Materials Group to improve risk control and revenue quality. It has transformed from the main “PS” strategy of expanding market share in the past to stableSustainable sustainable development strategy.
Profit forecast and investment advice The company ‘s “penetration across the country” strategy has been implemented steadily, leading vertical and stable brands have strengthened their influence, the market share has increased steadily, and revenue has been strong; it is feasible to actively respond to the market, adjust the organizational structure, and change their strategic positioningWith the high level of execution for a long time, it is expected that performance will maintain rapid growth.
We maintain EPS1 for 19-20.
77 yuan plus 21 years of EPS 2.
Maintain target price of 24.
RMB 84 corresponds to 18 times the estimated PE level in 2019 and maintains a “Buy” rating.
Risk warning: the macro economy is down, demand is less than expected, and raw material prices are rising.