SZSE:000651

Stock Analysis Report

Gree Electric Appliances of Zhuhai

Executive Summary

Gree Electric Appliances, Inc. of Zhuhai produces and sells household appliances worldwide.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Gree Electric Appliances of Zhuhai's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 000651 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.6%

651

-0.1%

CN Consumer Durables

0.5%

CN Market


1 Year Return

74.3%

651

44.2%

CN Consumer Durables

29.4%

CN Market

Return vs Industry: 000651 exceeded the CN Consumer Durables industry which returned 46.7% over the past year.

Return vs Market: 000651 exceeded the CN Market which returned 30.9% over the past year.


Shareholder returns

651IndustryMarket
7 Day-2.6%-0.1%0.5%
30 Day4.5%5.1%4.6%
90 Day17.5%17.4%9.1%
1 Year81.8%74.3%47.6%44.2%31.7%29.4%
3 Year192.4%167.7%55.6%47.3%1.3%-2.8%
5 Year284.0%215.8%118.9%98.7%18.4%10.8%

Price Volatility Vs. Market

How volatile is Gree Electric Appliances of Zhuhai's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Gree Electric Appliances of Zhuhai undervalued compared to its fair value and its price relative to the market?

14.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 000651 (CN¥68.9) is trading above our estimate of fair value (CN¥57.62)

Significantly Below Fair Value: 000651 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 000651 is good value based on its PE Ratio (15.2x) compared to the Consumer Durables industry average (25.6x).

PE vs Market: 000651 is good value based on its PE Ratio (15.2x) compared to the CN market (34.1x).


Price to Earnings Growth Ratio

PEG Ratio: 000651 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 000651 is overvalued based on its PB Ratio (4.1x) compared to the CN Consumer Durables industry average (2.9x).


Next Steps

Future Growth

How is Gree Electric Appliances of Zhuhai forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 000651's forecast earnings growth (8.9% per year) is above the savings rate (3.2%).

Earnings vs Market: 000651's earnings (8.9% per year) are forecast to grow slower than the CN market (21.1% per year).

High Growth Earnings: 000651's earnings are forecast to grow, but not significantly.

Revenue vs Market: 000651's revenue (7% per year) is forecast to grow slower than the CN market (15.4% per year).

High Growth Revenue: 000651's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 000651's Return on Equity is forecast to be high in 3 years time (24.6%)


Next Steps

Past Performance

How has Gree Electric Appliances of Zhuhai performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 000651 has high quality earnings.

Growing Profit Margin: 000651's current net profit margins (13.3%) are lower than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: 000651's earnings have grown by 18.3% per year over the past 5 years.

Accelerating Growth: 000651's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 000651 had negative earnings growth (-3.1%) over the past year, making it difficult to compare to the Consumer Durables industry average (11.4%).


Return on Equity

High ROE: 000651's Return on Equity (26.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gree Electric Appliances of Zhuhai's financial position?


Financial Position Analysis

Short Term Liabilities: 000651's short term assets (CN¥237.1B) exceed its short term liabilities (CN¥188.5B).

Long Term Liabilities: 000651's short term assets (CN¥237.1B) exceed its long term liabilities (CN¥956.5M).


Debt to Equity History and Analysis

Debt Level: 000651's debt to equity ratio (22.5%) is considered satisfactory.

Reducing Debt: 000651's debt to equity ratio has increased from 22.2% to 22.5% over the past 5 years.

Debt Coverage: 000651's debt is well covered by operating cash flow (193.5%).

Interest Coverage: 000651 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 000651 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 000651's debt is covered by short term assets (assets are 10.3x debt).


Next Steps

Dividend

What is Gree Electric Appliances of Zhuhai's current dividend yield, its reliability and sustainability?

3.09%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%0.4%markettop25%1.8%industryaverage2.2%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: 000651's dividend (3.05%) is higher than the bottom 25% of dividend payers in the CN market (0.42%).

High Dividend: 000651's dividend (3.05%) is in the top 25% of dividend payers in the CN market (1.76%)


Stability and Growth of Payments

Stable Dividend: 000651's dividend payments have been volatile in the past 10 years.

Growing Dividend: 000651's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.1%), 000651's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 000651's dividends in 3 years are forecast to be covered by earnings (62.7% payout ratio).


Next Steps

Management

What is the CEO of Gree Electric Appliances of Zhuhai's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Jin Huang (54yo)

2.4yrs

Tenure

CN¥5,200,000

Compensation

Mr. Jin Hui Huang has been Chief Executive Officer of Gree Electric Appliances, Inc. of Zhuhai since August 2017. Mr. Huang served as Chief Engineer and Executive Vice President of Gree Electric Appliances ...


Management Age and Tenure

6.3yrs

Average Tenure

50.5yo

Average Age

Experienced Management: 000651's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

59yo

Average Age

Experienced Board: 000651's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ming Dong (64yo)

    Chairman

    • Tenure: 7.7yrs
    • Compensation: CN¥9.60m
  • Jun Liu (42yo)

    Vice President

    • Tenure: 4.4yrs
    • Compensation: CN¥2.50m
  • Jin Huang (54yo)

    CEO & Director

    • Tenure: 2.4yrs
    • Compensation: CN¥5.20m
  • Zhuang Pei (53yo)

    Vice President

    • Tenure: 16.8yrs
    • Compensation: CN¥3.00m
  • Jingdong Wang (48yo)

    Chief Financial Officer

    • Tenure: 12yrs
    • Compensation: CN¥4.50m
  • Weicai Chen (46yo)

    Vice President

    • Tenure: 6.3yrs
    • Compensation: CN¥1.53m
  • Jianming Tan

    Chief Engineer

    • Tenure: 2.4yrs
    • Compensation: CN¥4.00m

Board Members

  • Xiang Kai Meng (58yo)

    Director

    • Tenure: 5.7yrs
  • Ming Dong (64yo)

    Chairman

    • Tenure: 7.7yrs
    • Compensation: CN¥9.60m
  • Jin Huang (54yo)

    CEO & Director

    • Tenure: 2.4yrs
    • Compensation: CN¥5.20m
  • Chu Xu (60yo)

    Chairman of Board of Supervisor

    • Tenure: 6.3yrs
  • Jundu Zhang (58yo)

    Director

    • Tenure: 7.7yrs
  • Xin Lu (56yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: CN¥120.00k
  • Wang Ruzhu (54yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: CN¥120.00k
  • Zifa Xu (64yo)

    Director

    • Tenure: 4.6yrs
  • Yang Guo (60yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: CN¥120.00k
  • Zhixiong Ye (61yo)

    Director

    • Tenure: 4.6yrs

Company Information

Gree Electric Appliances, Inc. of Zhuhai's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gree Electric Appliances, Inc. of Zhuhai
  • Ticker: 651
  • Exchange: SZSE
  • Founded: 1989
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: CN¥408.528b
  • Shares outstanding: 6.02b
  • Website: https://www.gree.com.cn

Number of Employees


Location

  • Gree Electric Appliances, Inc. of Zhuhai
  • West Jinji Road
  • Qianshan
  • Zhuhai
  • 519070
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
651SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYDec 1996
651XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYDec 1996

Biography

Gree Electric Appliances, Inc. of Zhuhai produces and sells household appliances worldwide. The company offers residential air conditioners (ACs), including wall-mounted, floor-standing, window, portable, dehumidifier, and special ACs; commercial air conditioners, such as light commercial, multi-VRF, chiller, terminal, packaged unit, and special ACs; and air to water heat pumps comprising residential and commercial water heaters, and multi-functional heat pumps. It also provides home appliances that include electric fans and heaters, water dispensers and purifiers, humidifiers, multi-cookers, air purifiers, electric kettles, pressure and induction cookers; side by side, Italian type, multi-door, three door, combi, double door, single door, and chest freezer refrigerators; and smartphone, industrial, compressor, motor, electronic components, enameled/electronic wires, intelligent equipment, precision molding products, valves, and castings components. The company serves the public, financial and communication, office, real estate, shopping center, hotel, and industrial sectors. The company was formerly known as Haili Air-conditioning Engineering Co., Ltd. of Zhuhai and changed its name to Gree Electric Appliances, Inc. of Zhuhai in 1994. Gree Electric Appliances, Inc. of Zhuhai was founded in 1989 and is headquartered in Zhuhai, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/18 14:38
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.