DB:GKE

Stock Analysis Report

Hisense Home Appliances Group

Executive Summary

Hisense Home Appliances Group Co., Ltd. manufactures and sells white household electrical appliances under the Hisense, Kelon, and Ronshen brands in the People’s Republic of China and internationally.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Hisense Home Appliances Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

9.0%

GKE

-1.3%

DE Consumer Durables

1.4%

DE Market


1 Year Return

35.8%

GKE

-6.6%

DE Consumer Durables

3.7%

DE Market

Return vs Industry: GKE exceeded the German Consumer Durables industry which returned -6.6% over the past year.

Return vs Market: GKE exceeded the German Market which returned 3.7% over the past year.


Shareholder returns

GKEIndustryMarket
7 Day9.0%-1.3%1.4%
30 Day1.6%-2.7%1.3%
90 Day-6.2%-10.2%3.4%
1 Year40.7%35.8%-4.4%-6.6%7.0%3.7%
3 Year31.6%15.5%-12.5%-19.6%18.5%8.3%
5 Year36.5%13.8%27.0%9.9%42.2%22.9%

Price Volatility Vs. Market

How volatile is Hisense Home Appliances Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hisense Home Appliances Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GKE (€0.91) is trading below our estimate of fair value (€1.98)

Significantly Undervalued: GKE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GKE is good value based on its PE Ratio (10.1x) compared to the Consumer Durables industry average (16.9x).

PE vs Market: GKE is good value based on its PE Ratio (10.1x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: GKE is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: GKE is overvalued based on its PB Ratio (2x) compared to the DE Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is Hisense Home Appliances Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GKE's forecast earnings growth (12.3% per year) is above the savings rate (0.2%).

Earnings vs Market: GKE's earnings (12.3% per year) are forecast to grow slower than the German market (12.7% per year).

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

Revenue vs Market: GKE's revenue (9.7% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: GKE's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GKE's Return on Equity is forecast to be low in 3 years time (18.5%).


Next Steps

Past Performance

How has Hisense Home Appliances Group performed over the past 5 years?

22.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GKE's earnings have grown significantly by 22.6% per year over the past 5 years.

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

Earnings vs Industry: GKE had negative earnings growth (-27.7%) over the past year, making it difficult to compare to the Consumer Durables industry average (-21.1%).


Return on Equity

High ROE: GKE's Return on Equity (18.8%) is considered low.


Return on Assets

ROA vs Industry: GKE's Return on Assets is below or equal to the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: GKE has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Hisense Home Appliances Group's financial position?


Financial Position Analysis

Short Term Liabilities: GKE's short term assets (CN¥17.5B) exceeds its short term liabilities (CN¥15.8B)

Long Term Liabilities: GKE's short term assets (17.5B) exceeds its long term liabilities (509.5M)


Debt to Equity History and Analysis

Debt Level: GKE is debt free.

Reducing Debt: GKE has no debt compared to 5 years ago when its debt to equity ratio was 12.9%.

Debt Coverage: GKE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GKE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GKE has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if GKE's debt is covered by short term assets.


Next Steps

Dividend

What is Hisense Home Appliances Group's current dividend yield, its reliability and sustainability?

2.65%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.5%markettop25%3.8%industryaverage3.3%forecastin3Years4.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GKE's dividend (2.65%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: GKE's dividend (2.65%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: GKE has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GKE's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.7%), GKE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GKE's dividends in 3 years are forecast to be well covered by earnings (35.1% payout ratio).


Next Steps

Management

What is the CEO of Hisense Home Appliances Group's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Ye Guo Tang (56yo)

0.8yrs

Tenure

CN¥3,273,400

Compensation

Mr. Tang Ye Guo has been an Executive Chairman of Hisense Kelon Electrical Holdings Company Limited (formerly, Guangdong Kelon Electrical Holdings Co. Ltd.) since June 2006 and its Executive Director since ...


CEO Compensation Analysis

Compensation vs. Market: Ye Guo has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Ye Guo's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.6yrs

Average Tenure

51yo

Average Age

Experienced Management: GKE's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

54.5yo

Average Age

Experienced Board: GKE's board of directors are considered experienced (3.3 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


Management Team

  • Lan Lin (61yo)

    Executive Director

    • Tenure: 13.3yrs
  • Ye Guo Tang (56yo)

    Executive Chairman & President

    • Tenure: 0.8yrs
    • Compensation: CN¥3.27m
  • Shao Qian Jia (46yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥2.54m
  • Tak Fong Wong (51yo)

    Company Secretary

    • Tenure: 7.3yrs
  • Hui Zhong Dai (53yo)

    Executive Director

    • Tenure: 3.3yrs
  • Yun Li Wang (46yo)

    VP & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥1.93m
  • Qian Mei Huang (35yo)

    Secretary of the Board

    • Tenure: 2.6yrs
  • Xiaolu Chen (42yo)

    CFO & Chief Accountant

    • Tenure: 0.8yrs
  • Li Fei (56yo)

    Executive Director

    • Tenure: 0.3yrs

Board Members

  • Jin Quan Ma (76yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥140.00k
  • Lan Lin (61yo)

    Executive Director

    • Tenure: 13.3yrs
  • Ye Guo Tang (56yo)

    Executive Chairman & President

    • Tenure: 0.8yrs
    • Compensation: CN¥3.27m
  • Shao Qian Jia (46yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥2.54m
  • Zhen Shun Liu (49yo)

    Chairman of Supervisory Committee

    • Tenure: 5.8yrs
  • Hui Zhong Dai (53yo)

    Executive Director

    • Tenure: 3.3yrs
  • Yun Li Wang (46yo)

    VP & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥1.93m
  • Geng Shen Zhong (58yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥70.00k
  • Sai Kit Cheung (47yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥100.00k
  • Li Fei (56yo)

    Executive Director

    • Tenure: 0.3yrs

Company Information

Hisense Home Appliances Group Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hisense Home Appliances Group Co., Ltd.
  • Ticker: GKE
  • Exchange: DB
  • Founded: 1984
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: CN¥13.597b
  • Listing Market Cap: CN¥1.724b
  • Shares outstanding: 1.36b
  • Website: https://www.kelon.com

Number of Employees


Location

  • Hisense Home Appliances Group Co., Ltd.
  • No. 8, Ronggang Road
  • Ronggui Street
  • Foshan
  • Guangdong Province
  • 528303
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HISE.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDJul 1996
GKEDB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURJul 1996
921SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDJul 1996
921SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDJul 1996
921SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYJun 1999
921XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYJun 1999
921SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesDomestic SharesHKHKDJun 1999

Biography

Hisense Home Appliances Group Co., Ltd. manufactures and sells white household electrical appliances under the Hisense, Kelon, and Ronshen brands in the People’s Republic of China and internationally. Its  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:35
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.