ORIENTAL YUHONG(SZ:002271) Guan Cha Zhe Wang·2025-07-05 02:22Core Viewpoint - Oriental Yuhong, a leading company in the waterproof coating industry, has announced a price increase for certain products starting in July, citing the need to maintain long-term brand health and stabilize market order [1][2]. Price Increase Details - The price adjustments include a 3%-13% increase for waterproof coatings, a 4%-9% increase for beautifying agents, and a 1%-5% increase for C0-grade tile adhesives in certain regions [1]. - Other companies in the industry, such as Keshun Building Materials and Beixin Waterproof, have also announced price increases following Oriental Yuhong's lead, with increases ranging from 1%-12% [2][3]. Industry Context - The chemical coating market has been experiencing price increases due to rising raw material costs and transportation expenses [2]. - Major chemical companies like BASF and Wanhua Chemical have also raised prices for their products, indicating a broader trend in the industry [2]. - The domestic coating market is facing saturation and intense competition, leading to cautious pricing strategies among companies in the civil construction sector [3]. Financial Performance - Oriental Yuhong's revenue declined by 14.52% year-on-year last year, totaling 28.056 billion yuan, with net profit plummeting by 95.24% to only 108 million yuan, marking the worst performance in 13 years [5]. - In the first quarter of this year, the company reported a 16.71% year-on-year revenue decline, amounting to 5.955 billion yuan, and a 44.68% drop in net profit [5]. Government Support - The company has received significant government subsidies this year, totaling over 96.25 million yuan, which accounts for 89.12% of last year's net profit [6]. - Despite the financial support, the industry is witnessing an increase in bankruptcies among less competitive companies, indicating a challenging environment [6].