Three Trees (603737): Coatings maintain rapid growth, waterproof materials add new profit points

Three Trees (603737): Coatings maintain rapid growth, waterproof materials add new profit points

The company achieved revenue of 35 in 2018.

84 ppm, an increase of 36 per year.

82%; realized net profit attributable to mother 2.

2.2 billion, an annual increase of 26.


In the fourth quarter of 2018, the company achieved revenue of 12.

8.5 billion, an increase of 42 every year.

48%; net profit attributable to mother is 0.

93 ppm, an increase of 8 per year.


Due to the increase in sales of main coatings, the company’s 2018 performance maintained steady growth.

The company achieved revenue in the first quarter of 20196.

31 ppm, an increase of 62 per year.

22%; net profit attributable to mothers was -1.92 million yuan, a year-on-year 天津夜网 increase of 75


Dayu leak prevention in February 2019 consolidated the company’s revenue and increased profits.

In 2018, the company’s home improvement wall paint sales reached 104,752 tons (+14.

34%), with an average unit price of 7.

61 yuan / kg (-1.

30%) and realized income 7.

9.7 billion (+12.

88%), with a gross profit margin of 56.

73% (-0.

7pct); sales of engineering wall paint 335,323 tons (+61.

28%), with an average unit price of 5.

25 yuan / kg (-4.

02%) and realized income of 17.

5.9 billion (+54.

67%), gross margin 40.

43% (-0.

05pct); sales of base materials and auxiliary materials were 254,436 tons (+38.

17%), with an average unit price of 1.

31 yuan / kg (+7.

38%) and realized income 3.

3.2 billion (+48.

01%), gross margin 31.

28% (+1.

62pct). Create a “painting 武汉夜生活 integration” service system.

In 2018, the company had a total of 872 authorized service outlets for “Live Now” services, and the number of transactions was 6.

40,000 orders, an increase of 256% in ten years.

The company continues to maintain a coating supply relationship with large real estate developers such as Evergrande Real Estate. It has connected from building, decoration, and retail to achieve market penetration in first- and second-tier cities and actively expands its business overseas.

At the same time, it will continue to consolidate the leading position in the third- and fourth-tier cities and the majority of towns and towns, and continue to promote the company’s transformation into an integrated service provider of “coating + service consulting + construction services”.

Waterproof membrane adds new profit points.

In February 2019, Dayu was leak-proof. In the first quarter of 2019, the company has sold 2.41 million square meters of waterproof membrane and achieved revenue of 41.25 million yuan.

Dayu Leakproof has many years of experience in the production and sales of waterproof materials, which can accelerate the growth of the company’s waterproof sector.

The company’s new Sichuan, Anhui, Putian and other waterproof membrane bases will soon be put into production, which will add new profit points for the company.

Profit forecast: The company is expected to realize net profit attributable to mothers from 2019 to 2021.



4.7 billion yuan, corresponding to PE is 26/18/13 times, given a “buy” rating.

Risk reminder: the risk of lower product prices and less-than-expected increase in production capacity.