# Beijing Oriental Yuhong Waterproof Technology (002271.SHE)

Canonical: https://gigainvestors.com/s/002271.SHE

Analysis as of: 2026-10-16T07:38:24.176Z. Financial observations: FY2005–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 10.45 per share; close as of 2026-10-15.

Estimated value: low CNY 2.48 per share, central CNY 2.59 per share, high CNY 2.72 per share. Buy at or below the central value CNY 2.59 per share. Valuation as of 2026-10-16T07:38:24.176Z; scenarios are not confidence intervals.

Expected annual return: 3.7% at the stated quote. About 3.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.40×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.14×

- FY2018: 0.13×

- FY2019: 0.14×

- FY2020: 0.19×

- FY2021: 0.16×

- FY2022: 0.08×

- FY2023: 0.09×

- FY2024: 0.02×

- FY2025: 0.08×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 7.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 18.2%

- ROIC, second-lowest year: 7.0%

- Typical minus recent gross margin: 7.7 pp

- Typical gross margin (annual median): 32.6%

- Recent gross margin (lower of latest and 3-year median): 24.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.8%

- ROIC including acquisitions, ten-year median: 13.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 22.2%

- FY2017: 18.1%

- FY2018: 18.3%

- FY2019: 20.5%

- FY2020: 30.4%

- FY2021: 24.7%

- FY2022: 9.3%

- FY2023: 9.1%

- FY2024: 1.7%

- FY2025: 7.0%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.36×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 3.2B

- Net income, five-year total: CNY 8.8B

- Return on incremental invested capital: 5.5%

- Working capital / revenue, annual change: -1.5 pp

- Working capital / revenue, change between three-year averages: -8.7 pp

- Working capital / revenue, final three-year average: 36.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.68×

- FY2022: -0.65×

- FY2023: 0.75×

- FY2024: -1.31×

- FY2025: 1.38×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 18.3% vs 7.0%

- Per-share earnings: 0.46 to 0.05 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.8%

- Ordinary dilution, 5-year annual growth: -0.7%

- Market cap gain: CNY -1.8B

- Cumulative retained earnings: CNY 5.6B

- Diluted shares, 10-year annual growth: 0.8%

- Diluted shares, 5-year annual growth: -0.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -24.2%

- Per-share value change: CNY -0.41

- Per-share value, starting three-year median: CNY 0.46

- Per-share value, ending three-year median: CNY 0.05

- Buybacks concentrated in cheaper years (correlation): -0.43

- Average buyback yield: 2.9%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 2.9B

- Cumulative net income, 10 years: CNY 18B

- ROIC, first three-year median: 18.3%

- ROIC, last three-year median: 7.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.46

- FY2017: CNY 0.50

- FY2018: CNY 0.66

- FY2019: CNY 0.89

- FY2020: CNY 1.44

- FY2021: CNY 1.60

- FY2022: CNY 0.84

- FY2023: CNY 0.90

- FY2024: CNY 0.04

- FY2025: CNY 0.05

### accounting: pass

- Sloan accruals: -8.2%

- Receivables to sales index (DSRI): 0.44×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 31.38×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.17×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 4.9%

- FY2017: 8.8%

- FY2018: 2.5%

- FY2019: 2.1%

- FY2020: -2.0%

- FY2021: 0.2%

- FY2022: 2.9%

- FY2023: 0.3%

- FY2024: -7.5%

- FY2025: -8.2%

## Holders

## Price story

Down 80% since Dec 2021 · sales -1.7%

Story as of 2026-10-16T10:00:09.900Z; price observation 2026-10-15.

Price needs cash profits to grow 31.2% a year for ten years

### Sales · FY2024–2025

sales -1.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 7.0B 

- FY2017: CNY 10B 

- FY2018: CNY 14B 

- FY2019: CNY 18B 

- FY2020: CNY 22B 

- FY2021: CNY 32B 

- FY2022: CNY 31B 

- FY2023: CNY 33B 

- FY2024: CNY 28B 

- FY2025: CNY 28B 

### Gross margin · FY2025

gross margin 24.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 42.4% 

- FY2017: 37.8% 

- FY2018: 34.6% 

- FY2019: 35.7% 

- FY2020: 37.0% 

- FY2021: 30.5% 

- FY2022: 25.8% 

- FY2023: 27.7% 

- FY2024: 25.8% 

- FY2025: 24.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty chemicals; annual sales are CNY 27.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); FY2025: revenue 27578652775.3; grossProfit 6844664255.49; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002271.SHE: Beijing Oriental Yuhong Waterproof Technology Co., Ltd., together with its subsidiaries, engages in the production and sale of waterproof membranes and coatings in China, Hong Kong, Macau, and internationally. The company offers flow technology solutions, construction raw materials, polyester reinforcing fabric materials, inorganic non-metallic materials, waterproofing materials, specialty films, insulation materials, architectural coatings, building renovation, and vocational skills training. It also provides waterproof membranes, coatings, mortars, sealants, and waterstops under the YUHONG brand name; and fine sand, premium manufactured sand, specialty mortars, white cement, calcium carbonate, wall putty, and gypsum-based mortar products under the VASA brand name. In additions, the company offers engineering and retail system solutions; and tile and stone installation, wall coating, thermal insulation bonding, floor leveling, and infrastructure maintenance system solutions. The company was incorporated in 1995 and is headquartered in Beijing, China.

### Why customers stay

Margins ranged from 24.8% to 27.7% during 2023–25; it earns 18.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); FY2023: grossProfit / revenue = 27.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); FY2024: grossProfit / revenue = 25.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); FY2025: grossProfit / revenue = 24.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); 10-year return on capital observations [[2016,0.22195702398460773],[2017,0.18121536282108516],[2018,0.1829167255705442],[2019,0.204835936097065],[2020,0.30357553711423174],[2021,0.24747516783252707],[2022,0.09345227335209813],[2023,0.09075083613360012],[2024,0.01723579770087562],[2025,0.06988294376603893]]; median 0.18206604419581468. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CNY 5.4 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); FY2016: growth capex 389264309.3350497; upkeep 318515298.6649503; owner earnings 854044923.3350496. Growth capex / owner earnings = 0.4557890325194729.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); FY2017: growth capex 810459316.5981054; upkeep 297445149.40189457; owner earnings 1118920503.5981054. Growth capex / owner earnings = 0.7243225179911501.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); FY2018: growth capex 961097686.8101584; upkeep 781675685.1898416; owner earnings 991153155.8101584. Growth capex / owner earnings = 0.969676261611221.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); FY2019: growth capex 989833733; upkeep 354804715; owner earnings 2065944693. Growth capex / owner earnings = 0.47911918279024324.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); FY2020: growth capex 942303494.7907805; upkeep 581372240.2092195; owner earnings 3280939467.7907805. Growth capex / owner earnings = 0.28720538859111605.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); FY2021: growth capex 2649894815.8972588; upkeep 1852113598.1027412; owner earnings 2856308443.381259. Growth capex / owner earnings = 0.92773412550654.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); FY2023: growth capex 479875054.8678708; upkeep 1404592141.1321292; owner earnings 1698873042.365871. Growth capex / owner earnings = 0.2824666958041733.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); FY2025: growth capex 0; upkeep 996156350.29; owner earnings 156459000.902. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); Dividend observations: [[2016,138874071],[2017,206001694],[2018,270642320],[2019,736580837],[2020,708322539],[2021,757068423],[2022,752513589],[2023,249059743],[2024,3078968207],[2025,4545756190.65]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); FY2025: cash repurchases 5377982311.5008335 CNY.

### Are managers owners

Insiders own 23.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002271.SHE SharesStats.PercentInsiders = 23.334 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 31.2% yearly over ten years; actual decline was 5.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:24.176Z); Ten-year compound average after fade. Initial solved rate 0.44656829921325214. Price 10.45; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.12449959699367046 → FY2025 0.06906641061407899. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 15.75 per share

- 2016-11: CNY 14.99 per share

- 2016-12: CNY 14.46 per share

- 2017-01: CNY 15.51 per share

- 2017-02: CNY 17.06 per share

- 2017-03: CNY 17.80 per share

- 2017-04: CNY 18.60 per share

- 2017-05: CNY 21.89 per share

- 2017-06: CNY 24.73 per share

- 2017-07: CNY 24.41 per share

- 2017-08: CNY 23.61 per share

- 2017-09: CNY 25.71 per share

- 2017-10: CNY 25.87 per share

- 2017-11: CNY 24.07 per share

- 2017-12: CNY 26.64 per share

- 2018-01: CNY 26.53 per share

- 2018-02: CNY 26.05 per share

- 2018-03: CNY 27.37 per share

- 2018-04: CNY 23.93 per share

- 2018-05: CNY 23.40 per share

- 2018-06: CNY 11.34 per share

- 2018-07: CNY 11.54 per share

- 2018-08: CNY 10.28 per share

- 2018-09: CNY 9.69 per share

- 2018-10: CNY 8.99 per share

- 2018-11: CNY 9.39 per share

- 2018-12: CNY 8.63 per share

- 2019-01: CNY 10.77 per share

- 2019-02: CNY 12.81 per share

- 2019-03: CNY 14.05 per share

- 2019-04: CNY 12.85 per share

- 2019-05: CNY 12.79 per share

- 2019-06: CNY 15.11 per share

- 2019-07: CNY 15.41 per share

- 2019-08: CNY 13.51 per share

- 2019-09: CNY 14.01 per share

- 2019-10: CNY 15.63 per share

- 2019-11: CNY 16.00 per share

- 2019-12: CNY 17.54 per share

- 2020-01: CNY 18.11 per share

- 2020-02: CNY 20.71 per share

- 2020-03: CNY 22.73 per share

- 2020-04: CNY 25.69 per share

- 2020-05: CNY 25.63 per share

- 2020-06: CNY 27.11 per share

- 2020-07: CNY 36.49 per share

- 2020-08: CNY 40.09 per share

- 2020-09: CNY 35.91 per share

- 2020-10: CNY 37.07 per share

- 2020-11: CNY 34.20 per share

- 2020-12: CNY 38.80 per share

- 2021-01: CNY 48.50 per share

- 2021-02: CNY 47.23 per share

- 2021-03: CNY 51.16 per share

- 2021-04: CNY 57.76 per share

- 2021-05: CNY 62.65 per share

- 2021-06: CNY 55.32 per share

- 2021-07: CNY 50.88 per share

- 2021-08: CNY 48.40 per share

- 2021-09: CNY 44.32 per share

- 2021-10: CNY 41.75 per share

- 2021-11: CNY 39.53 per share

- 2021-12: CNY 52.68 per share

- 2022-01: CNY 49.40 per share

- 2022-02: CNY 45.38 per share

- 2022-03: CNY 44.94 per share

- 2022-04: CNY 45.35 per share

- 2022-05: CNY 44.55 per share

- 2022-06: CNY 51.47 per share

- 2022-07: CNY 40.45 per share

- 2022-08: CNY 30.36 per share

- 2022-09: CNY 26.37 per share

- 2022-10: CNY 24.50 per share

- 2022-11: CNY 32.89 per share

- 2022-12: CNY 33.57 per share

- 2023-01: CNY 37.12 per share

- 2023-02: CNY 34.42 per share

- 2023-03: CNY 33.48 per share

- 2023-04: CNY 29.67 per share

- 2023-05: CNY 26.23 per share

- 2023-06: CNY 27.26 per share

- 2023-07: CNY 30.85 per share

- 2023-08: CNY 28.72 per share

- 2023-09: CNY 26.68 per share

- 2023-10: CNY 24.96 per share

- 2023-11: CNY 21.53 per share

- 2023-12: CNY 19.20 per share

- 2024-01: CNY 16.15 per share

- 2024-02: CNY 17.27 per share

- 2024-03: CNY 15.82 per share

- 2024-04: CNY 14.65 per share

- 2024-05: CNY 14.75 per share

- 2024-06: CNY 12.34 per share

- 2024-07: CNY 12.97 per share

- 2024-08: CNY 10.90 per share

- 2024-09: CNY 13.79 per share

- 2024-10: CNY 14.59 per share

- 2024-11: CNY 13.63 per share

- 2024-12: CNY 12.98 per share

- 2025-01: CNY 12.26 per share

- 2025-02: CNY 12.91 per share

- 2025-03: CNY 13.65 per share

- 2025-04: CNY 11.17 per share

- 2025-05: CNY 11.17 per share

- 2025-06: CNY 10.73 per share

- 2025-07: CNY 12.03 per share

- 2025-08: CNY 11.76 per share

- 2025-09: CNY 12.32 per share

- 2025-10: CNY 12.90 per share

- 2025-11: CNY 12.52 per share

- 2025-12: CNY 13.59 per share

- 2026-01: CNY 17.28 per share

- 2026-02: CNY 18.00 per share

- 2026-03: CNY 15.31 per share

- 2026-04: CNY 14.96 per share

- 2026-05: CNY 13.63 per share

- 2026-06: CNY 11.87 per share

- 2026-07: CNY 11.88 per share

- 2026-08: CNY 11.02 per share

- 2026-09: CNY 10.61 per share

- 2026-10: CNY 10.83 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 2.83 per share, central CNY 3.76 per share, high CNY 4.30 per share

- FY2017: low CNY 4.47 per share, central CNY 5.97 per share, high CNY 6.84 per share

- FY2018: low CNY 7.84 per share, central CNY 10.35 per share, high CNY 11.81 per share

- FY2019: low CNY 13.34 per share, central CNY 18.30 per share, high CNY 21.18 per share

- FY2020: low CNY 16.81 per share, central CNY 22.95 per share, high CNY 26.52 per share

- FY2021: low CNY 23.97 per share, central CNY 31.66 per share, high CNY 36.13 per share

- FY2022: low CNY 19.20 per share, central CNY 25.64 per share, high CNY 29.39 per share

- FY2023: low CNY 19.40 per share, central CNY 26.17 per share, high CNY 30.12 per share

- FY2024: low CNY 8.54 per share, central CNY 9.35 per share, high CNY 10.43 per share

- FY2025: low CNY 2.47 per share, central CNY 2.58 per share, high CNY 2.72 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:44:09.722Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.