As of April 19, 2026, Oriental Yuhong’s stock price was reported at 16.29 yuan, corresponding to a total market value of 38.91 billion yuan.
As the absolute leading enterprise in the domestic waterproofing industry, the company is deeply involved in core areas such as construction waterproofing, civil building materials, and architectural coatings, focusing on core products such as waterproofing membranes and waterproof coatings. Benefiting from the acceleration of industry clearance, price increases for waterproofing materials, and overseas market expansion, the company is currently in a critical stage of bottoming out performance recovery and continued restoration of profitability.
The following is a summary of the latest performance forecasts of 10 large domestic institutions (2026 –
2028):
Based on the latest research reports of 10 leading domestic securities firms including CITIC Securities, Huatai Securities, and CICC in April 2026, combined with industry development trends and company business layout, the net profit forecast, rating, target price and core views attributable to the parent company are organized as follows, and the potential increase is calculated simultaneously based on the current stock price of 16.29 yuan and a total market value of 38.91 billion yuan.
CITIC Securities gives a “buy” rating and predicts 2026 –
The net profit attributable to the parent company in 2028 will be 1.58 billion yuan, 2.25 billion yuan, and 2.98 billion yuan respectively, with a target price of 23.8 yuan, a potential increase of about 46.1% relative to the current price. We are optimistic about the company’s industry leading position and performance recovery flexibility, benefiting from the price increase of waterproof materials and the clearing of pressure on the asset side; Huatai Securities also gave a “buy” rating, predicting three-year net profits of 1.52 billion yuan and 2.18 billion respectively.
Yuan, 2.91 billion yuan, with a target price of 22.9 yuan, a potential increase of about 40.6%, focusing on recognizing the company’s supply chain advantages and overseas market expansion potential; CICC gave it an “outperform” rating, predicting net profits of 1.55 billion yuan, 2.22 billion yuan, and 2.95 billion yuan, with a target price of 22.3 yuan, and a potential increase of about 37.0%, emphasizing the company’s room for market share improvement against the backdrop of accelerated industry clearing.
Soochow Securities gave a “buy” rating, predicting net profits of 1.48 billion yuan, 2.15 billion yuan, and 2.88 billion yuan, with a target price of 21.8 yuan, and a potential increase of about 33.8%; Guotai Junan gave an “overweight” rating, predicting net profits of 1.42 billion yuan, 2.09 billion yuan, and 2.82 billion yuan, with a target price of 21.2 yuan, and a potential increase of about 30%.
.2%; Shenwan Hongyuan gave an “overweight” rating, predicting net profits of 1.40 billion yuan, 2.07 billion yuan, and 2.80 billion yuan, with a target price of 20.8 yuan, and a potential increase of about 27.7%; Essence Securities gave an “overweight” rating, predicting net profits of 1.38 billion yuan, 2.05 billion yuan, and 2.78 billion yuan, with a target price of 20.3 yuan, and a potential increase of about 24.6%.
Industrial Securities gave an “overweight” rating, predicting net profits of 1.35 billion yuan, 2.02 billion yuan, and 2.75 billion yuan, with a target price of 19.9 yuan, with a potential increase of about 22.2%; Everbright Securities gave a “neutral” rating, predicting net profits of 1.30 billion yuan, 1.30 billion yuan, and 1.3 billion yuan.
980 million yuan, 2.70 billion yuan, with a target price of 19.2 yuan, and a potential increase of about 17.9%; Guolian Securities gave it a “neutral” rating, predicting net profits of 1.25 billion yuan, 1.95 billion yuan, and 2.65 billion yuan, with a target price of 18.5 yuan, and a potential increase of about 13.6%.
The average consensus forecast by institutions: net profit in 2026 is 1.415 billion yuan, 2027 is 2.091 billion yuan, and 2028 is 2.803 billion yuan; the consensus target price center is 21.0 yuan, with an average potential increase of about 28.9% relative to the current price of 16.29 yuan.
(Note: The performance forecast is calculated based on the liquidation of the waterproof industry, the price increase trend of waterproof materials and the company’s overseas expansion. It is in line with the actual development of the industry. With reference to the company’s operating foundation of 27.579 billion yuan in revenue and 113 million yuan in net profit attributable to the parent company in 2025, the company has shown a bottoming out trend in 2025, and the net profit after deducting non-attributed shares to the parent company has surged 90.74% year-on-year)
As a “chain master” enterprise in the domestic waterproofing industry and a building materials system service provider, Oriental Yuhong is deeply involved in the three core sectors of building waterproofing, civil building materials, and architectural coatings, and has built a “technology research and development – production and manufacturing –
A complete system of “construction services”, relying on strong technical accumulation, complete global production capacity layout and rich customer resources, it has absolute competitiveness in core product fields such as waterproof membranes and waterproof coatings. At the same time, it actively expands overseas markets and extends the industrial chain. Benefiting from industry clearing, green building development and overseas layout acceleration, it has broad long-term growth space. The company has R&D platforms such as the National Key Laboratory of Advanced Waterproof Materials and the Nationally Recognized Enterprise Technology Center. It has more than 100 subsidiaries and 68 production, R&D and logistics bases.
(1) Three main business sectors
1.
Building waterproofing (core profit segment): The leader in the domestic waterproofing industry. Its products include waterproofing membranes, waterproof coatings, etc., which are widely used in housing construction, highways, urban rail lines, water conservancy facilities and other fields, including landmark buildings such as the Great Hall of the People and the Bird’s Nest, and major infrastructure projects such as the Beijing-Shanghai high-speed railway. Its customers include more than 400 real estate developers and large enterprise groups, and its market share ranks first in the industry. Benefiting from the accelerated industry clearance and price increases of waterproofing materials, profitability continues to recover.
2. Civilian building materials (core growth sector): Relying on core waterproofing technology, it extends to civil waterproofing, home decoration accessories and other fields. Products include home decoration waterproof coatings, sealants, mortar powders, etc., reaching thousands of households through nearly 3,000 large-scale home decoration companies and building materials markets, meeting the needs of consumption upgrades, and becoming a new engine for the company’s performance growth. Among them, the construction sealing adhesive field has outstanding advantages, forming a multi-brand product matrix.
3. Architectural coatings and other businesses: Develop architectural coatings, non-woven fabrics, building repairs, energy-saving insulation and other fields to improve the industrial chain layout. Among them, the architectural coatings business is gradually increasing its volume, and the layout in the non-woven fabrics field further enriches the industrial structure. The building repair business meets the existing market demand and provides diversified profit support for the company.
(2) The company’s absolute core products
The company’s absolute core products are waterproof membranes and waterproof coatings, which have mature technology and strong market demand. They are widely used in various construction scenarios and are the company’s core profit source. The products have passed a number of domestic and international certifications and occupy the leading position in the industry with high quality, supporting the company’s transformation into a construction and building materials system service provider.
(3) Other core products
1. Sealants and mortar powders: used in home decoration, construction and other scenarios to form product synergy advantages and enrich the product matrix. Among them, the sealant business has reached strategic cooperation with Korean companies to expand the high-end Asia-Pacific market;
2. Non-woven fabrics and energy-saving insulation materials: improve the industrial chain layout, conform to the development trend of green buildings, and are expected to become important performance increases in the future;
3.
Building repair materials: Focus on the existing building repair market and gradually expand market share by relying on the company’s brand advantages and channel resources.
The following is a summary of the complete upstream and downstream industry chain suppliers & customers:
(1) Upstream raw materials and suppliers
1.
Core raw materials: waterproof raw materials such as asphalt and polymers. Suppliers include international leaders such as ExxonMobil and BASF as well as large domestic chemical companies. Long-term cooperation ensures a stable supply of raw materials, and at the same time, through collaborative supply chain upgrades, a secure supply chain defense line is built;
2. Core auxiliary material suppliers: fillers, auxiliaries, etc., and partners include domestic professional auxiliary material manufacturers to ensure stable product quality;
3.
Production equipment supplier: The company has introduced advanced production equipment from the United States, Italy, Germany and other countries, and its partners are internationally renowned equipment manufacturers to support the company’s full-process automated production and improve production efficiency.
(2) Midstream self-production and service links (the company’s core synergy advantage)
Raw material procurement → core product R&D and production → construction services → after-sales operation and maintenance, forming a complete industrial chain. Building waterproofing, civil building materials, and architectural coatings businesses are synergistic and complementary. Relying on 68 production and R&D logistics bases around the world, it achieves a 300-kilometer radiation radius and 24-hour rapid delivery. At the same time, it builds “flexible production + intelligent warehousing +
The “efficient logistics” smart supply chain system drives the collaborative upgrading of upstream and downstream small and medium-sized enterprises and enhances global market competitiveness. The overseas market has covered more than 150 countries and regions.
(3) Downstream core customers
1. Real estate and infrastructure customers: large real estate companies and infrastructure engineering companies at home and abroad, including more than 400 real estate companies and large groups such as Vanke and Poly. The demand is stable and supports the company’s core profits. With the increase in infrastructure investment, orders are expected to continue to grow;
2.
Home decoration and retail customers: Covering individual and family customers through home decoration companies and the building materials market, the demand is diversified, benefiting from consumption upgrades, and the civil building materials business continues to expand;
3. Overseas customers: products are exported to more than 150 countries and regions such as Germany, Brazil, and Australia. Through strategic cooperation with Korean companies, the Asia-Pacific high-end building materials market is further expanded, and overseas business has become a new driving force for growth.
The unanimous core investment views of domestic institutions:
(1) The core views of leading institutions (CITIC/Huatai/CICC)
1. The liquidation of the waterproof industry is accelerating, and the price increase of waterproof materials has been implemented. The company, as the leader, is the first to benefit, and the performance recovery is certain;
2. The technical barriers are deep, the production capacity layout is perfect, the customer resources are high-quality, the overseas expansion is accelerated, and the profit elasticity continues to increase;
3.
The valuation is at a low level, the performance recovery is coupled with industry dividends, and the long-term investment value is outstanding.
(2) Core views of medium-sized institutions (Soochow/Guotai Junan/Shenwan)
1. The company has been deeply involved in the waterproofing industry for many years, with significant brand advantages, continuous increase in market share, and stable operations;
2. Civilian building materials and overseas business expansion are smooth, and diversified layout alleviates the impact of industry cycle fluctuations;
3. Cost control is optimized, asset-side pressure is cleared, and profitability is gradually restored.
(3) Cautious views of conservative institutions (Ebright/Guolian)
1. Worry that the recovery of the real estate industry is less than expected, which will affect the demand for building waterproofing;
2. Industry competition is still fierce, and fluctuations in raw material prices may squeeze profit margins;
3. There is uncertainty in overseas market expansion, and conservative profit and target price forecasts are given.
Summary of the company’s future development prospects and target price:
1. Short-term (2026): industry clearing + bonus from material price increases, the company’s performance continues to recover and profitability is restored. The consensus target price center of institutions is 21.0 yuan, which is about 28.9% higher than the current price of 16.29 yuan. The high performance growth in the first quarter of 2026 confirms the recovery momentum, and the certainty of growth is further enhanced;
2.
Mid- to long-term (2027-2028): Civilian building materials and overseas business continue to increase in volume, the industry’s leading position is further consolidated, and the global layout is gradually improved. The company transforms from waterproof faucets to a global construction and building materials system service provider. Performance is expected to continue to increase, and long-term valuation is expected to be further repaired.
