Dongfang Yuhong (002271) 2019 First Quarterly Report Review: Sales Growth Exceeds Expectation, Quality and Efficiency Increase Enters Steady Growth Period

Investment highlights: The company achieved operating income in the first quarter of 201926.

86 ‰, an increase of 41 per year.

01%, achieving net profit attributable to shareholders of listed companies.

27 ppm, an increase of 28 in ten years.


The initial gain is zero.

09 yuan, down 18 every year.


The increase in sales volume led to the increase in revenue and the increase in raw material prices led to a slight decline in gross profit margin.

The company’s operating income for the first quarter of 2019 was 26.

86 ppm, an increase of 41 over the same period last year.

01%, some of the company’s business markets have developed smoothly, and the sales of waterproof materials have maintained more than 40% each year.

The company’s gross profit margin for the first quarter of 2019 was 34.

48%, down by 1 every year.

47 units, related to rising raw material prices. The average price increase of modified asphalt in the fourth quarter of 2018 and the first quarter of 2019 was 27.

78% and 17.


During the period, the expense ratio dropped slightly, and profitability will enter an upward channel.

Report period company expenses 28.

22%, down by 1 every year.

70 units.

Among them, the selling expenses are 16.

重庆耍耍网35%, a year-on-year increase of 0.

17 units; management fee expenses 9.

67%, a decrease of 3 over the same period last year.

41 units; financial expenses 2.

20%, a year-on-year increase of 1.

54 units.

In the case of the company’s gross profit margin and period expense rate both slightly decreased, the company’s net profit in the first quarter was 4.

59%, a decline of 0 every year.

55 units, but the company’s single quarter ROE is 1.

60%, rising by 0 every year.

14 averages.

The leading level has steadily entered a period of steady development.

Through the strategy of price reduction and expansion since 2015, the company’s market rate has continuously increased and its scale has grown rapidly. From 5.3 billion operating revenues in 2015 to 14 billion US dollars in 2018, the leader has further advantages and is far ahead.

With the adjustment of the strategy of the Chinese economy’s quality-shifting companies, it has entered a stage of steady development.

The release of production capacity and the new operating system and standards have promoted the company’s steady growth.

The production bases invested by the company in Wuhu, Anhui, Qingdao Laixi, Hangzhou Jiande, and Henan Puyang have been put into production successively. The company’s national layout advantage has gradually increased, further increasing the company’s market share.At the same time, the company has established production logistics R & D bases in North China, East China, Northeast China, Central China, South China, Northwest China and Southwest China to reduce the cost of warehousing and logistics.

The new partnership system improves the motivation of employees and channel dealers, and increases the collection of receivables.

China Construction Engineering and the China National Construction Group have also made great efforts to highlight the incremental and stock demand release.

Profit forecast and investment rating: It is expected that the company’s EPS from 2019 to 2021 will be 1.

39 yuan, 1.

81 yuan and 2.

23 yuan, corresponding to PE is 13 times, 10 times and 8 times, maintaining the company’s investment rating of “strongly recommended”.

Risk warning: The favorable continuity of the real estate industry is less than expected.