ORIENTAL YUHONG(SZ:002271) KAIYUAN SECURITIES·2024-09-02 05:48Investment Rating - The investment rating for the company is "Buy" (maintained) [3][4][5] Core Insights - The company is experiencing steady development in channel transformation, with retail business showing resilience. Despite a decline in revenue and profit, the company is optimistic about future growth due to ongoing projects and new material advancements [4][5]. - The company reported a 20.85% year-on-year decrease in revenue for H1 2024, totaling 12.199 billion yuan, and a 56.87% decline in net profit, amounting to 1.299 billion yuan [4]. - The company has adjusted its profit forecasts for 2024-2026, now expecting net profits of 2.71 billion, 3.10 billion, and 3.39 billion yuan respectively, reflecting a significant decrease in 2024 but a recovery in subsequent years [4][5]. Financial Performance Summary - For H1 2024, the company achieved revenues of 60.41 billion yuan in Q2, with a quarter-on-quarter decline of 1.9%. The net profit for Q2 was 4.32 billion yuan, down 50.24% from the previous quarter [4]. - The company’s revenue breakdown for H1 2024 shows waterproof membranes, coatings, mortar, and engineering construction generating revenues of 6.05 billion, 4.76 billion, 2.13 billion, and 1.26 billion yuan respectively, with varying year-on-year changes [5]. - The gross margin for H1 2024 was 29.22%, a slight increase from the previous year, with retail channels showing the highest gross margin at 40.82% [5]. Future Outlook - The company has 10 million tons of coal mines under construction, which are expected to contribute to future production capacity. Additionally, advancements in new energy materials such as sodium-ion batteries and photovoltaic components are progressing well [4][5]. - The company is actively expanding its overseas presence, with international revenues reaching 405 million yuan in H1 2024, a year-on-year increase of 6.46% [5].