ORIENTAL YUHONG(002271) 华源证券·2025-03-24 09:58Investment Rating - The investment rating for the company is "Accumulate" (首次) [1] Core Views - The report highlights that Dongfang Yuhong is a leader in the waterproofing industry in China, undergoing a new transformation phase. The company has a history of adapting and growing through adversity, establishing a strong brand presence and market position [4][6]. - The strategic shift towards retail and away from real estate and construction is emphasized, with a focus on long-term sustainable development. The company is expected to see significant growth in its C-end business, with revenue projected to reach 9.37 billion yuan in 2024, a year-on-year increase of 14.58% [6]. - The report anticipates that the company's net profit will rebound significantly, with projections of 1.525 billion yuan in 2025, 2.130 billion yuan in 2026, and 2.771 billion yuan in 2027, reflecting a strong recovery trajectory [5][6]. Financial Summary - The closing price of the stock is 13.41 yuan, with a total market capitalization of approximately 32,032.47 million yuan and a circulating market value of 25,676.53 million yuan [3]. - The company’s revenue is projected to be 28,056 million yuan in 2024, with a year-on-year growth rate of -14.52%, followed by a recovery to 29,587 million yuan in 2025, representing a growth rate of 5.46% [5][7]. - The earnings per share (EPS) is expected to be 0.05 yuan in 2024, increasing to 0.64 yuan in 2025 and further to 0.89 yuan in 2026 [5][7].