SEHK:1169

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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

Rewards

Earnings are forecast to grow 7.82% per year

Earnings have grown 10.8% per year over the past 5 years

Risk Analysis

No risks detected for 1169 from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


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

3.8%

1169

7.7%

HK Consumer Durables

9.1%

HK Market


1 Year Return

13.8%

1169

11.5%

HK Consumer Durables

0.9%

HK Market

Return vs Industry: 1169 exceeded the Hong Kong Consumer Durables industry which returned 11.5% over the past year.

Return vs Market: 1169 exceeded the Hong Kong Market which returned 0.9% over the past year.


Shareholder returns

1169IndustryMarket
7 Day3.8%7.7%9.1%
30 Day7.3%6.9%8.2%
90 Day24.0%23.0%13.8%
1 Year16.1%13.8%13.6%11.5%4.6%0.9%
3 Year31.0%24.7%2.2%-4.6%13.1%1.4%
5 Year32.3%23.6%12.1%1.3%10.8%-7.1%

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?

15.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1169 (HK$24.3) is trading above our estimate of fair value (HK$13.83)

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 (15.2x) compared to the Consumer Durables industry average (9.3x).

PE vs Market: 1169 is poor value based on its PE Ratio (15.2x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 1169 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: 1169 is overvalued based on its PB Ratio (2.1x) 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 13 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 (1.6%).

Earnings vs Market: 1169's earnings (7.8% per year) are forecast to grow slower than the Hong Kong market (17.6% per year).

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

Revenue vs Market: 1169's revenue (4.3% per year) is forecast to grow slower than the Hong Kong market (10.8% per year).

High Growth Revenue: 1169's revenue (4.3% 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 (13.6%).


Next Steps

Past Performance

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

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1169 has high quality earnings.

Growing Profit Margin: 1169's current net profit margins (5.3%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: 1169's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: 1169's earnings growth over the past year (16.1%) exceeds its 5-year average (10.8% per year).

Earnings vs Industry: 1169 earnings growth over the past year (16.1%) underperformed the Consumer Durables industry 16.1%.


Return on Equity

High ROE: 1169's Return on Equity (14.2%) is considered low.


Next Steps

Financial Health

How is Haier Electronics Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1169's short term assets (CN¥35.5B) exceed its short term liabilities (CN¥19.0B).

Long Term Liabilities: 1169's short term assets (CN¥35.5B) exceed its long term liabilities (CN¥1.4B).


Debt to Equity History and Analysis

Debt Level: 1169's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: 1169's debt to equity ratio has reduced from 15% to 0.3% over the past 5 years.

Debt Coverage: 1169's debt is well covered by operating cash flow (5815.7%).

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


Balance Sheet


Next Steps

Dividend

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

2.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1169's dividend (2.02%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1169's dividend (2.02%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.54%).


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 reasonably low payout ratio (30.4%), 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 (35% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.6yrs

Average management tenure


CEO

Ju Zhi Xie (53yo)

1.33yrs

Tenure

CN¥4,232,000

Compensation

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  ...


CEO Compensation Analysis

Compensation vs Market: Ju Zhi's total compensation ($USD603.15K) is about average for companies of similar size in the Hong Kong market ($USD610.96K).

Compensation vs Earnings: Insufficient data to compare Ju Zhi's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Yunjie Zhou
Executive Chairman7.08yrsCN¥12.16m0.33% CN¥225.4m
Ju Zhi Xie
CEO & Executive Director1.33yrsCN¥4.23m0.016% CN¥10.8m
Hua Gang Li
Executive Director1.33yrsCN¥5.37m0.012% CN¥8.2m
Xue Zhang
Chief Financial Officer1.33yrsno datano data
Chi Yin Ng
Company Secretary11.33yrsno datano data
Wu Kesong
Senior Consultant7.58yrsCN¥1.21mno data
Chun Hua Cao
Senior Consultant10.67yrsno datano data

7.6yrs

Average Tenure

53yo

Average Age

Experienced Management: 1169's management team is seasoned and experienced (7.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yunjie Zhou
Executive Chairman7.08yrsCN¥12.16m0.33% CN¥225.4m
Ju Zhi Xie
CEO & Executive Director1.33yrsCN¥4.23m0.016% CN¥10.8m
Hua Gang Li
Executive Director1.33yrsCN¥5.37m0.012% CN¥8.2m
Li Kam Fun Cheng
Independent Non-Executive Director7.08yrsCN¥437.00k0.0086% CN¥5.8m
Hai Shan Liang
Non-Executive Director18.58yrsCN¥142.00kno data
Hon To Yu
Independent Non-Executive Director13.08yrsCN¥466.00k0.018% CN¥12.4m
Changzheng Ma
Independent Non-Executive Director0.92yrCN¥107.00kno data
Shao-Lin Gong
Independent Non-Executive Director2.08yrsCN¥290.00kno data
Guang Yang
Non-Executive Director2.17yrsCN¥45.00kno data

2.2yrs

Average Tenure

54yo

Average Age

Experienced Board: 1169's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

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$68.081b
  • 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, manufacture, and sale of washing machines and water heaters under the Haier, Casarte, and Leader brands in Mainland China and internationally. It operates through three segments: Washing Machine Business, Water Heater and Water Purifier Business, and Channel Services Business. The Washing Machine Business segment manufactures and sells washing machines. The Water Heater Business segment manufactures and sells water heaters and purifiers. The Channel Services Business segment sells and distributes home appliances and other products, as well as provides after-sale and other value-added consumer services. The company also offers water treatment equipment and home electric appliances, as well as involved in the online sale of home electric appliances. The company was founded in 1984 and is headquartered in Central, Hong Kong. Haier Electronics Group Co., Ltd. is a subsidiary of Haier Smart Home Co., Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 12:38
End of Day Share Price2020/07/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.