SEHK:921

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 Analysis

Flawless balance sheet with solid track record.

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

Stable Share Price: 921's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.9%

921

-2.6%

HK Consumer Durables

0.2%

HK Market


1 Year Return

-42.6%

921

-25.3%

HK Consumer Durables

-22.0%

HK Market

Return vs Industry: 921 underperformed the Hong Kong Consumer Durables industry which returned -25.2% over the past year.

Return vs Market: 921 underperformed the Hong Kong Market which returned -22% over the past year.


Shareholder returns

921IndustryMarket
7 Day2.9%-2.6%0.2%
30 Day-15.8%-18.2%-12.4%
90 Day-24.7%-20.0%-16.4%
1 Year-40.6%-42.6%-23.8%-25.3%-19.1%-22.0%
3 Year-28.8%-37.5%-20.4%-25.4%-3.7%-13.4%
5 Year-5.2%-20.7%-26.1%-34.1%-15.2%-28.8%

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

Below Fair Value: 921 (HK$7) is trading below our estimate of fair value (HK$66.71)

Significantly Below Fair Value: 921 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 921 is good value based on its PE Ratio (7x) compared to the Consumer Durables industry average (10.1x).

PE vs Market: 921 is good value based on its PE Ratio (7x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 921 is poor value based on its PEG Ratio (6.4x)


Price to Book Ratio

PB vs Industry: 921 is overvalued based on its PB Ratio (1.4x) compared to the HK Consumer Durables industry average (0.7x).


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?

1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 921's forecast earnings growth (1.1% per year) is below the savings rate (1.6%).

Earnings vs Market: 921's earnings (1.1% per year) are forecast to grow slower than the Hong Kong market (11.6% per year).

High Growth Earnings: 921's earnings are forecast to grow, but not significantly.

Revenue vs Market: 921's revenue (10.9% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).

High Growth Revenue: 921's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 921's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

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

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 921 has high quality earnings.

Growing Profit Margin: 921's current net profit margins (4.8%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: 921's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: 921's earnings growth over the past year (30.2%) exceeds its 5-year average (23.6% per year).

Earnings vs Industry: 921 earnings growth over the past year (30.2%) exceeded the Consumer Durables industry 8.3%.


Return on Equity

High ROE: 921's Return on Equity (15.6%) is considered low.


Next Steps

Financial Health

How is Hisense Home Appliances Group's financial position?


Financial Position Analysis

Short Term Liabilities: 921's short term assets (CN¥24.5B) exceed its short term liabilities (CN¥20.8B).

Long Term Liabilities: 921's short term assets (CN¥24.5B) exceed its long term liabilities (CN¥671.4M).


Debt to Equity History and Analysis

Debt Level: 921's debt to equity ratio (0.8%) is considered satisfactory.

Reducing Debt: 921's debt to equity ratio has reduced from 6.5% to 0.8% over the past 5 years.

Debt Coverage: 921's debt is well covered by operating cash flow (2003.7%).

Interest Coverage: 921 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 921 has a high level of physical assets or inventory.

Debt Coverage by Assets: 921's debt is covered by short term assets (assets are 245x debt).


Next Steps

Dividend

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

3.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 921's dividend (3.29%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.6%).

High Dividend: 921's dividend (3.29%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.27%).


Stability and Growth of Payments

Stable Dividend: 921 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 921's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23%), 921's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Yue Bin Duan (38yo)

0.083

Tenure

Mr. Duan Yue Bin serves as President at Hisense Home Appliances Group Co., Ltd. since March 5, 2020. Mr. Duan has been the assistant to the general manager of Hisense (Beijing) Electric Co., Ltd. and the a ...


Leadership Team

NamePositionTenureCompensationOwnership
Ye Guo Tang
Executive Chairman13.83yrsCN¥3.27m0.046% CN¥5.6m
Shao Qian Jia
Executive Director4.83yrsCN¥2.54m0.030% CN¥3.7m
Xiaolu Chen
CFO & Chief Accountant1.25yrsno datano data
Lan Lin
Executive Director13.83yrsno datano data
Hui Zhong Dai
Executive Director3.83yrsno datano data
Tak Fong Wong
Company Secretary7.83yrsCN¥169.20kno data
Qian Mei Huang
Secretary of the Board3.08yrsCN¥207.20kno data
Yue Bin Duan
President & Executive Director0.083yrno datano data
Li Fei
Executive Director0.83yrno datano data

2.2yrs

Average Tenure

51yo

Average Age

Experienced Management: 921's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ye Guo Tang
Executive Chairman13.83yrsCN¥3.27m0.046% CN¥5.6m
Shao Qian Jia
Executive Director4.83yrsCN¥2.54m0.030% CN¥3.7m
Lan Lin
Executive Director13.83yrsno datano data
Hui Zhong Dai
Executive Director3.83yrsno datano data
Li Fei
Executive Director0.83yrno datano data
Jin Quan Ma
Independent Non-Executive Director3.25yrsCN¥140.00kno data
Zhen Shun Liu
Chairman of Supervisory Committee6.25yrsno datano data
Yu Gao
Supervisor0.83yrCN¥1.43mno data
Geng Shen Zhong
Independent Non-Executive Director1.83yrsCN¥70.00kno data
Sai Kit Cheung
Independent Non-Executive Director1.67yrsCN¥100.00kno data

3.5yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 921's board of directors are considered experienced (3.5 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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: 921
  • Exchange: SEHK
  • Founded: 1984
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: CN¥11.269b
  • Listing Market Cap: CN¥12.322b
  • 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 products include refrigerators, air-conditioners, freezers, kitchen electrical appliances, and washing machines. It also provides after sales services. The company was formerly known as Hisense Kelon Electrical Holdings Company Limited and changed its name to Hisense Home Appliances Group Co., Ltd. in October 2018. Hisense Home Appliances Group Co., Ltd. was founded in 1984 and is headquartered in Foshan, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 13:14
End of Day Share Price2020/04/03 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.