China Radio International Beijing August 23 (Reporter Yang Liuqing) "Waterproof Maple" Dongfang Yuhong is in a vortex of "increasing income but not profit".
After-market Oriental Yuhong released its first half financial report on August 22 shows that in the first half of 2022, the company's operating income was approximately 15.307 billion yuan, an increase of 7.57% year-on-year; the net profit was approximately 966 million yuan, a decrease of 37.13% year-on-year; the basic earnings per share of are 30.38 yuan, a decrease of 40.63% year-on-year. It is planned to not pay cash, not to give bonus shares , and not to increase.
Since July, Oriental Yuhong's stock price has fallen by nearly 40%, and senior executives have also been questioned by investors to reduce their holdings in advance. What's wrong with "Waterproof Maple"?
Net profit in the second quarter was close to halving
Behind the slowdown in performance growth of Oriental Yuhong is the increase in pressure on raw materials and accounts receivable. As a representative performance stock of the upstream real estate industry, Oriental Yuhong's development has been affected by the recession in real estate. In terms of revenue, the revenue in the first half of the year was 15.307 billion yuan, an increase of 7.57% year-on-year. The semi-annual report shows that the company's revenue growth in the first half of the year was mainly due to the revenue growth in the first quarter, with revenue in the first quarter of 6.309 billion yuan, a year-on-year increase of 17.31%. This means that Oriental Yuhong still grew in the second quarter of this year, but the increase was only 1.6%, with an amount of 8.998 billion yuan.
(changes in net profit attributable to shareholders since 2017, source: Oriental Fortune Network )
From the perspective of revenue composition, the sales of waterproof material are still Dongfang Yuhong's main source of revenue, accounting for more than 82%; waterproof coil revenue accounts for more than 46% of total revenue, and waterproof coating accounts for 36%.
In terms of net profit, Oriental Yuhong's net profit attributable to shareholders of listed companies in the first half of the year was 966 million yuan, a year-on-year decrease of 37.13%. Looking at the details, the net profit in the first quarter of this year was 317 million yuan, which is almost the same as the 296 million yuan in the first quarter of last year. It is estimated that Oriental Yuhong achieved a net profit of 649 million yuan in the second quarter of this year, a decrease of about 47.7% compared with the data of 1.241 billion in the same period last year, close to half.
Oriental Yuhong said that affected by the rise in prices of bulk materials such as asphalt , the company's operating cost in the 2022 semi-annual period was 11.188 billion yuan, a year-on-year increase of 15%, higher than the growth rate of 7.6%, resulting in a 4.7% decrease in gross profit margin to 26.91%. The period expense ratio was 16.3%, an increase of 1.2% from the previous year.
"The profit decline of leading enterprises in building materials is mainly affected by two factors. First, the increase in the cost of building materials raw materials has further reduced profits; second, the poor real estate market conditions and the decrease in demand for building materials will also affect building materials companies." Yan Yuejin, a well-known real estate analyst, analyzed to China Radio International .
It is worth noting that the net cash flow generated by operating activities reflecting the company's own profitability indicators has also declined significantly. In the first half of the year, the net cash flow generated by Oriental Yuhong's operating activities was -6.98 billion yuan, a decrease of 99.98% from the same period last year. It was mainly due to the sharp rise in the prices of raw materials such as asphalt during the reporting period, resulting in a large increase in procurement expenditure in the current period.
According to the semi-annual report, the net cash flow of generated by Dongfang Yuhong's investment activities in the first half of the year was -1.489 billion yuan, an increase of 47.75% over the same period last year, mainly due to the increase in cash paid for the acquisition of fixed assets, intangible assets and other long-term assets of in this period and the increase in cash received from the recovery of investment.
With revenue increased by more than 1.1 billion in the first half of the year, Oriental Yuhong's accounts receivable increased from 8.764 billion at the end of last year to 12.954 billion this year, while Oriental Yuhong's accounts receivable increased from 8.764 billion at the end of last year to 12.954 billion yuan this year, while Oriental Yuhong's accounts receivable was 9.822 billion yuan in the same period last year. In the second quarter, the turnover days of accounts receivable in was 147.99 days, a slight decrease from 152.52 days in the first quarter, but it still rose significantly from 120.56 days last year.
Yan Yuejin pointed out that due to the real estate market, accounts receivable are only funds to be collected on the books, and the funds recovered by building materials companies are relatively slow. It takes a process to recover the real estate industry and the accounts receivable of building materials companies, which does not mean that building materials companies can feel it immediately.
executives frequently reduced their holdings and were questioned
"Is executives' reduction of holdings at the end of June and early July considered insider trading?" China Radio and Television noticed that there were netizens in the Dongfang Yuhong Dongcai Stock Bar questioning the frequent and accurate reduction of holdings by the company's executives.On the Shenzhen Stock Exchange Interactive Platform, some investors questioned why the company's interim profit fell sharply beyond expectations. Why didn't it make a preview? Is the precise reduction of executives' holdings and cashing out a performance leak?
(Details of the reduction of the executives of Oriental Yuhong's holdings from June 20 to July 8, 2022, source: Oriental Fortune Network)
wind data shows that from June 20 to July 8, Dongfang Yuhong's director and president Zhang Zhiping, vice president Wang Wenping, vice chairman Xu Liming, director and vice president Zhang Ying, director Xiang Jinming and director Yang Haocheng, six senior executives reduced their holdings by a total of 12.12 million shares, and accumulated a total of 561 million yuan. Among them, the one with the largest reduction in holdings was Vice Chairman Xu Liming, who reduced his holdings by 10 million shares and cashed out 459 million yuan. After the reduction, Xu Liming still held 72.2692 million shares. In general, the average average price of the six executives to reduce their holdings was 46.25 yuan per share.
On one side, executives reduced their holdings, while on the other side, Dongfang Yuhong started the road of repurchase. On July 2, Oriental Yuhong issued an announcement on the progress of shares repurchasing. As of June 30, the company has repurchased a total of 11.5593 million shares through repurchasing special securities accounts through centralized bidding transactions, accounting for 0.46% of the company's total share capital. The highest and highest transaction price is 49.76 yuan/share, the lowest transaction price is 37.24 yuan/share, and the total transaction amount is 494 million yuan.
(Screenshot of the question asked by investors on the Shenzhen Stock Exchange Interactive Easy Platform)
"Executives are reducing their holdings, and the company is increasing their holdings. Is there any transfer of interests between the company and shareholders? Or is there a problem with the capital chain within the company?" An investor asked on the Shenzhen Stock Exchange Interactive Easy Platform. In response, the secretary of the board of directors of Oriental Yuhong replied that the company strictly follows the requirements of relevant laws and regulations, continuously improves the corporate governance mechanism , improves the corporate governance structure , strengthens internal and external management and supervision, and continues to standardize operations. There is no transfer of interests between the company and shareholders.
stock price crashed and hit the limit once
Oriental Yuhong disclosed on August 15, 2022 in Shenzhen Stock Exchange Interactive. As of August 10, 2022, the number of shareholders of the company was 157,400.
Directoral Wealth Network data shows that Oriental Yuhong has received 31 research reports from brokerage firms in the past six months, of which 25 institutions have bought ratings and 5 institutions have increased their holdings.
Regarding the performance changes, Oriental Yuhong mentioned in its semi-annual report that the domestic COVID-19 epidemic has been repeated and real estate demand is sluggish. At the same time, under the principle of risk control priority and stable operation, the company has continuously optimized its customer structure, which has a certain impact on the revenue realization in the first half of the year.
However, after the semi-annual report was released, investors in held 150,000 and chose to "vote with their feet". On August 23, Oriental Yuhong opened low and closed low, hit the daily limit during the session, and its stock price hit a new low of 31.73 yuan per share. As of the close, Oriental Yuhong's stock price fell 9.96% to 31.74 yuan, which has fallen by nearly 40% compared with the high of 52.88 yuan this year, and its total market value has evaporated by more than 50 billion yuan.
Judging from the changes in the institutional holdings of Oriental Yuhong, there are both increases and decreases. The semi-annual report shows that in the second quarter, Ruiyuan Growth Value Mixed Securities Investment Fund A reduced its holdings of Oriental Yuhong by 4.4912 million shares, and its holdings dropped to 33.7382 million shares; Fuguo Tianhui Selection Growth Mixed Securities Investment Fund (LOF) A, Huitianfu Value Selection Mixed Securities Investment Fund A, and Janchor Partners Pan-Asian Master Fund increased their holdings in Oriental Yuhong during the reporting period.
information shows that Oriental Yuhong was founded in 1995 and is the leader in the A-share construction waterproof materials industry. Its customers include Vanke and Poly and are a typical upstream representative of the real estate industry. As of the end of 2021, the company's three major sectors of waterproof coils, waterproof coatings and waterproof construction contributed revenue of 15.67 billion, 9.82 billion and 4.028 billion, respectively, accounting for 49.06%, 30.75%, and 12.61%
