ORIENTAL YUHONG(SZ:002271) Jing Ji Guan Cha Wang·2025-11-17 06:37Core Insights - The construction and building materials industry is undergoing a deep structural adjustment, with national real estate development investment declining by 14.7% year-on-year from January to October 2025, while the confidence index for building materials and home furnishings managers fell by 61.68 points in October, indicating widespread growth anxiety among companies. However, Oriental Yuhong (002271), a leader in the waterproofing industry, demonstrated resilience with a year-on-year revenue growth of 8.51% in Q3 2025 and a significant increase of 184.56% in net cash flow from operating activities [1] Group 1: Channel Restructuring - The company has initiated a channel transformation by prioritizing retail and partner strategies, moving away from reliance on direct sales to major real estate clients. In the first half of 2025, revenue from engineering and retail channels reached 11.406 billion yuan, accounting for 84.06% of total revenue, while direct sales dropped to 15% [2] - Retail revenue further increased to 37.28% of total revenue in the first half of 2025, following the company's previous achievement of surpassing 10.209 billion yuan in retail revenue last year. The "Rainbow People Plan" has empowered partners to attract customers, and new initiatives have been launched to enhance consumer experience [2] Group 2: Asset Optimization - The company is actively disposing of idle assets to optimize resource allocation, having sold idle properties in Beijing and Hangzhou and completed the sale of shares in Kingsoft Services. This strategy aims to convert short-term assets into long-term development opportunities, aligning with market expectations for efficient asset allocation [3] - The trend of asset sales in the building materials sector is increasing, with the scale surpassing 12 billion yuan in 2024, up from 7.6 billion yuan in 2023, indicating a shift towards a "lightweight" operational model in the industry [3] Group 3: Globalization Strategy - In response to domestic market adjustments, the company has positioned internationalization as a key growth driver, establishing a global layout through self-built bases, overseas acquisitions, and localized operations. In the first half of 2025, overseas revenue grew by 42.16% year-on-year [4] - The company has developed an integrated network for production and supply across regions, with production bases in Malaysia, Canada, and the Middle East, and is advancing its operations in Houston, USA. The acquisition of a leading Chilean building materials company has facilitated rapid market entry into South America [4] - Currently, the company operates in 18 countries, collaborating with international chemical firms like BASF to develop advanced materials, and leveraging a global network to penetrate over 150 countries and regions [4] Conclusion - The company's ability to navigate through industry cycles stems from its long-term commitment to building core competencies. By transforming channels, optimizing assets, and expanding globally, Oriental Yuhong is poised to unlock further growth potential and serve as a replicable model for high-quality development in the construction and building materials industry [5]