ORIENTAL YUHONG(002271) Huachuang Securities·2025-05-12 07:30Investment Rating - The report maintains a "Strong Buy" rating for Dongfang Yuhong, with a target price of 15 CNY per share [2][9]. Core Views - The company experienced a decline in revenue and net profit in 2024, with total revenue of 28.056 billion CNY, down 14.52% year-on-year, and a net profit of 108 million CNY, down 95.24% year-on-year. The first quarter of 2025 also saw a revenue drop of 16.71% year-on-year to 5.955 billion CNY, with a net profit of 190 million CNY, down 44.68% year-on-year [2][9]. - Despite the revenue decline, the company is optimizing its channels and improving cash flow, with a significant increase in cash flow from operating activities in the first quarter of 2025 [9]. Financial Summary - 2024 Financial Performance: - Total revenue: 28,056 million CNY - Year-on-year growth rate: -14.5% - Net profit: 108 million CNY - Year-on-year growth rate: -95.2% - Earnings per share (EPS): 0.05 CNY - Price-to-earnings ratio (P/E): 250 [5][10] - 2025 Financial Projections: - Expected total revenue: 29,877 million CNY - Expected net profit: 1,438 million CNY - Expected EPS: 0.60 CNY - Expected P/E: 19 [5][10] - 2026 and 2027 Projections: - 2026 expected total revenue: 32,232 million CNY, net profit: 1,765 million CNY, EPS: 0.74 CNY, P/E: 15 - 2027 expected total revenue: 35,858 million CNY, net profit: 2,332 million CNY, EPS: 0.98 CNY, P/E: 12 [5][10]. Market Performance - The company’s stock price has shown a significant decline of 35% over the past year, compared to the Shanghai and Shenzhen 300 index [8].