Dongfang Yuhong (002271) quarterly report review for 2019: high net profit increase, current sales-to-sales ratio increase, revealing improvement in receivables

Dongfang Yuhong (002271) quarterly report review for 2019: high net profit increase, current sales-to-sales ratio increase, revealing improvement in receivables

Core point of view The first quarter revenue and net profit maintained rapid growth, indicating that the company’s market share has increased and downstream demand has been strong.

The increase in the current sales ratio showed that the receivables receivable went smoothly.

The short-term operating cash flow net value has fallen sharply due to the winter storage of asphalt, which is expected to improve in the future.

  Performance Overview: The company’s operating income for the first quarter 苏州桑拿网 of 201926.

8.6 billion, net profit attributable to mothers1.

2.7 billion, an increase of 41 each year.

01%, 28.

89%; net profit after deduction to mother 1.

07 million yuan, an increase of 40 in ten years.

48%; basic EPS 0.

09 yuan.

  Increased share and strong demand led to high performance, and asphalt winter storage increased Q1 gross profit margin.

In Q1 2019, the company’s revenue growth rate was 41.

1%, a significant increase of 13 per year.


We judge that this is mainly due to the company’s market share expansion and strong real estate start-up demand.

Gross profit margin for the first quarter of 2019 was 34.

48%, down by 1 every year.

47; compared with the fourth quarter of 2018, an increase of 3 from the previous quarter.


As the company’s product raw materials are mainly 无锡桑拿网 asphalt, fluctuations in asphalt prices will cause corresponding changes in gross profit margin.

It is expected that the company’s asphalt winter storage scale will penetrate in 2019, and it is expected that the average gross margin in the first half of the year will still gradually increase.

  Compared with the previous large increase, the current sales improved and the repayment was improved, and the management expense rate decreased every year.

The ratio of cash received from sales of goods and services provided by the company in Q1 2019 (sales ratio) is 141.

19%, an increase of 11 per year.


It can be seen that the company’s Q1 payment situation is progressing smoothly.

In terms of period expenses, the overall expense ratio decreased by 1.

7pcts; the sales expense ratio increases slightly by 0 every year.

17pct, the management expense ratio (including research and development expenses) is reduced by 4 every year.

41pcts, which is expected to be caused by the restructuring of the company’s structure and the downsizing of personnel in the scale department; the financial expense ratio will increase by 1 every year.

5pcts, mainly due to the increase in short-term borrowings by 24 over the same period last year.

The US $ 400 million increase in interest rate expenditures.

  Short-term operating net cash flow has been significantly reduced.

In the first quarter of 2019, the company increased its capital investment to expand the market, increased the performance bond payment and increased the speed of stocking raw materials, making other receivables +778% / + 153% per year and +21 in stocks.

5% / + 69 per night.

3%, which resulted in a 73% decrease in the company’s monetary funds.

44% to 12.89 million, operating net cash flow was -29.

5.6 billion, a decrease of 20 per year.

5.5 billion.

We judge to gradually track the return of the performance bond and the digestion of winter storage asphalt, and the net operating cash flow is expected to improve.

  Risk factors.

Risks of gradual fluctuations in real estate investment, gradual changes in investment in facilities, risks of macroeconomic fluctuations, and risks of receivables recovery.

  Profit forecast and investment advice.

The company is the first domestic brand of waterproofing, with a significant market share advantage. Q1 revenue in 2019 maintained a growth rate of more than 40%. At the same time, it increased capital investment to expand the market, and the subsequent market expansion continued to expand.

Based on this, we raise the company’s profit forecast and expect the company’s net profit attributable to mothers to be 18 in 2019-2021.

8.5 billion, 23.

6 billion, 29.

450,000 yuan, corresponding to EPS1.



97 yuan (previous forecast 19/20 1).


40 yuan).

The DCF is estimated at 23.

35 yuan, maintain “Buy” rating.