ORIENTAL YUHONG(SZ:002271) Xin Lang Cai Jing·2025-08-01 00:33Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, with ongoing pressure from industry demand and competition, but is optimistic about maintaining market share and improving cash flow through channel optimization and cost control [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 13.569 billion yuan, a year-on-year decrease of 10.84%, and a net profit attributable to shareholders of 564 million yuan, down 40.16% [1]. - Q2 revenue was 7.614 billion yuan, a decline of 5.64% year-on-year, with net profit of 372 million yuan, down 35.72% [1]. - The company's gross margin for Q2 was 26.71%, a decrease of 2.1 percentage points year-on-year, while the gross margin for H1 was 25.4%, down 3.82 percentage points [2]. Business Segments - Revenue from waterproof materials decreased by 12.48% year-on-year, while revenue from mortar powder business fell by 6.24%. The construction revenue dropped by 32.34% year-on-year due to controlled project scale [1]. - The company is optimizing its channel structure, with retail channel revenue down 6.98% but its proportion increasing by 1.54 percentage points, and engineering channel revenue down 5.26% with a 2.76 percentage point increase in proportion [1]. International Expansion - The company reported overseas revenue of 576 million yuan, a significant increase of 42.16% year-on-year, indicating successful progress in international market development [1]. Cost Management - The company has effectively controlled expenses, with all four expense ratios declining year-on-year, particularly a notable decrease in sales expense ratio [2]. - Credit impairment losses increased to 430 million yuan, impacting profit performance [2]. Cash Flow - Operating cash flow improved, with a net cash flow from operating activities of -396 million yuan in H1 2025, compared to -1.328 billion yuan in the same period last year [2]. - The company has focused on enhancing collection efforts, resulting in a significant reduction in accounts receivable and other receivables [2]. Growth Outlook - The company is adjusting its profit forecasts for 2025-2027, with net profit estimates revised to 1.495 billion yuan, 2.006 billion yuan, and 2.356 billion yuan respectively, reflecting market demand and competitive pressures [3]. - The company maintains a "buy" rating, anticipating that structural adjustments will yield positive results and that international acquisitions will create new growth opportunities [3].