SEHK:1169

Stock Analysis Report

Executive Summary

Haier Electronics Group Co., Ltd., an investment holding company, engages in the research, development, production, and sale of washing machines and water heaters under the brand name of Haier, Casarte, and Leader in Mainland China and internationally.

Snowflake

Flawless balance sheet with proven track record.

Rewards

Earnings are forecast to grow 7.84% per year

Earnings grew by 7.5% over the past year

Risk Analysis

No risks detected for 1169 from our risk checks.


Similar Companies

Share Price & News

How has Haier Electronics Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1169 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

1169

-26.6%

HK Consumer Durables

-4.2%

HK Market


1 Year Return

23.0%

1169

-17.9%

HK Consumer Durables

-1.9%

HK Market

Return vs Industry: 1169 exceeded the Hong Kong Consumer Durables industry which returned -17.9% over the past year.

Return vs Market: 1169 exceeded the Hong Kong Market which returned -1.9% over the past year.


Shareholder returns

1169IndustryMarket
7 Day2.6%-26.6%-4.2%
30 Day3.8%-27.5%-2.9%
90 Day19.1%-38.8%-0.08%
1 Year25.3%23.0%-16.9%-17.9%1.6%-1.9%
3 Year81.1%74.4%2.7%-4.4%17.9%6.1%
5 Year7.4%1.8%-9.3%-19.3%15.0%-4.0%

Price Volatility Vs. Market

How volatile is Haier Electronics Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Haier Electronics Group undervalued compared to its fair value and its price relative to the market?

14.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1169 (HK$22.05) is trading above our estimate of fair value (HK$20.6)

Significantly Below Fair Value: 1169 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1169 is poor value based on its PE Ratio (14.1x) compared to the Consumer Durables industry average (13.8x).

PE vs Market: 1169 is poor value based on its PE Ratio (14.1x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1169 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 1169 is overvalued based on its PB Ratio (2.3x) compared to the HK Consumer Durables industry average (0.8x).


Next Steps

Future Growth

How is Haier Electronics Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1169's forecast earnings growth (7.8% per year) is above the savings rate (2%).

Earnings vs Market: 1169's earnings (7.8% per year) are forecast to grow slower than the Hong Kong market (11.5% per year).

High Growth Earnings: 1169's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1169's revenue (7.5% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 1169's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1169's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

How has Haier Electronics Group performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1169 has high quality earnings.

Growing Profit Margin: 1169's current net profit margins (4.7%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: 1169's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: 1169's earnings growth over the past year (7.5%) is below its 5-year average (11.4% per year).

Earnings vs Industry: 1169 earnings growth over the past year (7.5%) exceeded the Consumer Durables industry -8.3%.


Return on Equity

High ROE: 1169's Return on Equity (15.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Haier Electronics Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1169's short term assets (CN¥35.2B) exceeds its short term liabilities (CN¥17.8B)

Long Term Liabilities: 1169's short term assets (CN¥35.2B) exceeds its long term liabilities (3.0B)


Debt to Equity History and Analysis

Debt Level: 1169's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: 1169's debt to equity ratio has reduced from 17.5% to 0.4% over the past 5 years.

Debt Coverage: 1169's debt is well covered by operating cash flow (4612.6%).

Interest Coverage: 1169 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1169 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1169's debt is covered by short term assets (assets are 351.6x debt).


Next Steps

Dividend

What is Haier Electronics Group's current dividend yield, its reliability and sustainability?

1.68%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%2.3%markettop25%6.3%industryaverage2.6%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: 1169's dividend (1.68%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1169's dividend (1.68%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.32%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1169 has been paying a dividend for less than 10 years.

Growing Dividend: 1169's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.8%), 1169's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1169's dividends in 3 years are forecast to be well covered by earnings (37.8% payout ratio).


Next Steps

Management

What is the CEO of Haier Electronics Group's salary, the management and board of directors tenure and is there insider trading?

6.9yrs

Average management tenure


CEO

Ju Zhi Xie (52yo)

0.7yrs

Tenure

0

Mr. Xie Ju Zhi has been Chief Executive Officer and Executive Director of Haier Electronics Group Co., Ltd. since March 27, 2019 and served as its Vice President since July 2012 to March 27, 2019. Mr. Xie  ...


Management Age and Tenure

6.9yrs

Average Tenure

52yo

Average Age

Experienced Management: 1169's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

1.5yrs

Average Tenure

53yo

Average Age

Experienced Board: 1169's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyCN¥18,835,99904 Jan 19
Haier Smart Home Co., Ltd.
EntityCompany
Shares1,000,000
Max PriceCN¥18.84
BuyCN¥13,852,07804 Jan 19
Haier Smart Home Co., Ltd.
EntityCompany
Shares749,000
Max PriceCN¥18.49

Ownership Breakdown

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


Management Team

  • Wu Kesong (68yo)

    Senior Consultant

    • Tenure: 6.9yrs
    • Compensation: CN¥1.21m
  • Chi Yin Ng (53yo)

    Company Secretary

    • Tenure: 10.7yrs
  • Chun Hua Cao (50yo)

    Senior Consultant

    • Tenure: 10yrs
  • Yunjie Zhou (53yo)

    Chairman

    • Tenure: 6.4yrs
    • Compensation: CN¥15.56m
  • Hua Gang Li (50yo)

    Executive Director

    • Tenure: 0.7yrs
    • Compensation: CN¥3.83m
  • Bo Zhan (39yo)

    Chief Financial Officer

    • Tenure: 6yrs
  • Ju Zhi Xie (52yo)

    CEO & Executive Director

    • Tenure: 0.7yrs

Board Members

  • Eva Cheng (67yo)

    Independent Non-Executive Director

    • Tenure: 6.4yrs
    • Compensation: CN¥601.00k
  • Hai Shan Liang (53yo)

    Non-Executive Director

    • Tenure: 17.9yrs
    • Compensation: CN¥142.00k
  • David Yu (71yo)

    Independent Non-Executive Director

    • Tenure: 12.4yrs
    • Compensation: CN¥678.00k
  • John Ma (57yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Shao-Lin Gong (64yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: CN¥128.00k
  • Yunjie Zhou (53yo)

    Chairman

    • Tenure: 6.4yrs
    • Compensation: CN¥15.56m
  • Hua Gang Li (50yo)

    Executive Director

    • Tenure: 0.7yrs
    • Compensation: CN¥3.83m
  • Ju Zhi Xie (52yo)

    CEO & Executive Director

    • Tenure: 0.7yrs
  • Guang Yang (42yo)

    Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥45.00k

Company Information

Haier Electronics Group Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Haier Electronics Group Co., Ltd.
  • Ticker: 1169
  • Exchange: SEHK
  • Founded: 1984
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: HK$60.013b
  • Shares outstanding: 2.80b
  • Website: https://www.haier.hk

Number of Employees


Location

  • Haier Electronics Group Co., Ltd.
  • The Center
  • 35th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HREL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2005
1169SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2005
HC7BDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2005
1169SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 2005
1169SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 2005
HREL.YOTCPK (Pink Sheets LLC)ADRUSUSDDec 2008

Biography

Haier Electronics Group Co., Ltd., an investment holding company, engages in the research, development, production, and sale of washing machines and water heaters under the brand name of Haier, Casarte, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 12:47
End of Day Share Price2019/11/22 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.