Beijing Oriental Yuhong (002271 CH) Hold: Questions remain over continued GPM expansion

研报英文原文证据摘录

Beijing Oriental Yuhong (002271 CH) Hold: Questions remain over continued GPM expansion

h in our view, supported the company’s 1Q sales volume growth. In

52-WEEK PRICE (RMB)

addition, incremental contributions from retail acquisitions in Chile and Hong Kong

also helped drive 1Q revenue growth of 21% y-o-y. Although the industry as a whole 20.00

continues to face demand pressure, we believe the gradual implementation of cost- 14.65

driven price increases will help Yuhong achieve its revenue target of over RMB30bn. 9.30

Therefore, our 2026 revenue forecast remains unchanged. 05/25 11/25 05/26

Target price: 16.90 High: 18.90 Low: 10.41 Current: 16.22

Margin pressure set to surface if cost pass-through weakens Although the

Source: LSEG IBES, HSBC Qianhai Securities estimates

waterproofing industry announced that it plans to raise prices in July, Yuhong’s GPM

still declined in 2H25, suggesting a weak price increase amid intense market

Yi Ru* (Reg. No. S1700520120001)

competition. As a result, we think industry-wide GPM improvement in 1Q26 was Head, A-share Petrochem & New Materials Research

mainly driven by inventory gains from low-cost asphalt stockpiling in Dec-Jan. As low- HSBC Qianhai Securities Limited

yi.ru@hsbcqh.com.cn

cost asphalt inventories are gradually depleted in 2Q, we expect cost pressures to +86 21 5066 2008

increase with asphalt prices rising c40% y-t-d and other raw material costs remaining Jill Huang* (Reg. No. S1700524120002)

high. We estimate that asphalt costs accounted for 45% of waterproof coil ASP Analyst, A-share Petrochemical and New Materials

HSBC Qianhai Securities Limited

(Exhibit 6), indicating that Yuhong may need to raise prices by 18% in 2026 to jill.q.huang@hsbcqh.com.cn