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Hisense Home Appliances Group

SEHK:921
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
921
SEHK
CN¥14B
Market Cap
  1. Home
  2. HK
  3. Consumer Durables
Company description

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. The last earnings update was 88 days ago. More info.


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  • Hisense Home Appliances Group has significant price volatility in the past 3 months.
921 Share Price and Events
7 Day Returns
-5%
SEHK:921
1.3%
HK Consumer Durables
0.8%
HK Market
1 Year Returns
20.2%
SEHK:921
-16.6%
HK Consumer Durables
-4.4%
HK Market
921 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hisense Home Appliances Group (921) -5% -11.1% -20.7% 20.2% 88% -8.6%
HK Consumer Durables 1.3% -0.5% -11.9% -16.6% 0.6% -13.5%
HK Market 0.8% 0.3% -7.4% -4.4% 17.8% 1.7%
1 Year Return vs Industry and Market
  • 921 outperformed the Consumer Durables industry which returned -16.6% over the past year.
  • 921 outperformed the Market in Hong Kong which returned -4.4% over the past year.
Price Volatility
921
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Hisense Home Appliances Group's competitors could be found in our database.

Value

 Is Hisense Home Appliances Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hisense Home Appliances Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hisense Home Appliances Group.

SEHK:921 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:921
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.86 (1 + (1- 25%) (0.28%))
0.907
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.907 * 5.96%)
7.41%

Discounted Cash Flow Calculation for SEHK:921 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hisense Home Appliances Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:921 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 7.41%)
2020 1,194.96 Est @ -24.22% 1,112.52
2021 999.54 Est @ -16.35% 866.39
2022 891.13 Est @ -10.85% 719.14
2023 828.82 Est @ -6.99% 622.72
2024 793.24 Est @ -4.29% 554.87
2025 774.17 Est @ -2.4% 504.17
2026 765.79 Est @ -1.08% 464.31
2027 764.59 Est @ -0.16% 431.61
2028 768.35 Est @ 0.49% 403.81
2029 775.61 Est @ 0.94% 379.50
Present value of next 10 years cash flows CN¥6,059.04
SEHK:921 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥775.61 × (1 + 2%) ÷ (7.41% – 2%)
CN¥14,633.12
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥14,633.12 ÷ (1 + 7.41%)10
CN¥7,159.94
SEHK:921 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥6,059.04 + CN¥7,159.94
CN¥13,218.98
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥13,218.98 / 1,362.73
CN¥9.7
SEHK:921 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in SEHK:921 represents 0.74703x of SZSE:000921
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.74703x
Value per Share
(Listing Adjusted, HKD)
= Value per Share (CNY) x Listing Adjustment Factor
= CN¥ 9.70 x 0.74703
HK$7.25
Value per share (HKD) From above. HK$7.25
Current discount Discount to share price of HK$8.80
= -1 x (HK$8.80 - HK$7.25) / HK$7.25
-21.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hisense Home Appliances Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hisense Home Appliances Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hisense Home Appliances Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:921 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥1.11
SZSE:000921 Share Price ** SZSE (2019-07-19) in CNY CN¥11.78
Hong Kong Consumer Durables Industry PE Ratio Median Figure of 25 Publicly-Listed Consumer Durables Companies 10.78x
Hong Kong Market PE Ratio Median Figure of 1,512 Publicly-Listed Companies 10.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hisense Home Appliances Group.

SEHK:921 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SZSE:000921 Share Price ÷ EPS (both in CNY)

= 11.78 ÷ 1.11

10.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hisense Home Appliances Group is good value based on earnings compared to the HK Consumer Durables industry average.
  • Hisense Home Appliances Group is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Hisense Home Appliances Group's expected growth come at a high price?
Raw Data
SEHK:921 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
13.4%per year
Hong Kong Consumer Durables Industry PEG Ratio Median Figure of 7 Publicly-Listed Consumer Durables Companies 0.71x
Hong Kong Market PEG Ratio Median Figure of 481 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:921 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.61x ÷ 13.4%

0.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hisense Home Appliances Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Hisense Home Appliances Group's assets?
Raw Data
SEHK:921 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥5.71
SZSE:000921 Share Price * SZSE (2019-07-19) in CNY CN¥11.78
Hong Kong Consumer Durables Industry PB Ratio Median Figure of 39 Publicly-Listed Consumer Durables Companies 0.87x
Hong Kong Market PB Ratio Median Figure of 2,198 Publicly-Listed Companies 0.92x
SEHK:921 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SZSE:000921 Share Price ÷ Book Value per Share (both in CNY)

= 11.78 ÷ 5.71

2.06x

* Primary Listing of Hisense Home Appliances Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hisense Home Appliances Group is overvalued based on assets compared to the HK Consumer Durables industry average.
X
Value checks
We assess Hisense Home Appliances Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Durables industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Durables industry average (and greater than 0)? (1 check)
  5. Hisense Home Appliances Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hisense Home Appliances Group expected to grow at an attractive rate?
  • Hisense Home Appliances Group's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Hisense Home Appliances Group's earnings growth is expected to exceed the Hong Kong market average.
  • Hisense Home Appliances Group's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:921 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:921 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 13.4%
SEHK:921 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 8.1%
Hong Kong Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
Hong Kong Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average 8.1%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:921 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:921 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 44,254 1,337 2,145 4
2020-12-31 41,152 1,383 1,892 6
2019-12-31 37,713 1,769 1,647 5
SEHK:921 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 35,732 1,945 1,516
2018-12-31 36,020 1,049 1,377
2018-09-30 35,902 1,377 1,454
2018-06-30 36,252 492 2,144
2018-03-31 34,753 63 2,045
2017-12-31 33,488 455 2,018
2017-09-30 32,694 1,441 1,954
2017-06-30 31,214 2,459 1,201
2017-03-31 28,674 2,939 1,198
2016-12-31 26,730 2,926 1,088
2016-09-30 24,675 2,887 984
2016-06-30 22,983 1,750 634

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hisense Home Appliances Group's earnings are expected to grow by 13.4% yearly, however this is not considered high growth (20% yearly).
  • Hisense Home Appliances Group's revenue is expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:921 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Hisense Home Appliances Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:921 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.58 1.75 1.50 4.00
2020-12-31 1.39 1.52 1.32 5.00
2019-12-31 1.21 1.32 1.15 5.00
SEHK:921 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 1.11
2018-12-31 1.01
2018-09-30 1.07
2018-06-30 1.58
2018-03-31 1.50
2017-12-31 1.48
2017-09-30 1.44
2017-06-30 0.88
2017-03-31 0.88
2016-12-31 0.80
2016-09-30 0.72
2016-06-30 0.47

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hisense Home Appliances Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Hisense Home Appliances Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hisense Home Appliances Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hisense Home Appliances Group's growth in the last year to its industry (Consumer Durables).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hisense Home Appliances Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Hisense Home Appliances Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Hisense Home Appliances Group's 1-year earnings growth is negative, it can't be compared to the HK Consumer Durables industry average.
Earnings and Revenue History
Hisense Home Appliances Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hisense Home Appliances Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:921 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 35,732.14 1,516.22 5,435.69 710.39
2018-12-31 36,019.60 1,377.46 5,433.66 686.77
2018-09-30 35,901.70 1,453.89 5,359.40 823.35
2018-06-30 36,251.99 2,143.87 5,446.84 802.44
2018-03-31 34,752.85 2,044.74 5,218.90 770.28
2017-12-31 33,487.59 2,018.11 5,223.80 618.49
2017-09-30 32,694.19 1,954.00 5,353.14 440.70
2017-06-30 31,213.63 1,200.55 5,449.19 287.29
2017-03-31 28,673.74 1,197.63 5,660.90
2016-12-31 26,730.22 1,087.73 5,593.54
2016-09-30 24,674.56 984.01 5,466.73
2016-06-30 22,983.41 633.90 5,200.21
2016-03-31 22,806.28 502.20 5,174.03
2015-12-31 23,471.60 580.34 5,226.55
2015-09-30 23,772.83 420.31 5,103.61
2015-06-30 24,748.03 568.43 5,207.01
2015-03-31 26,567.25 670.33 5,368.01
2014-12-31 26,534.42 672.48 5,247.77
2014-09-30 26,679.03 772.66 5,232.20
2014-06-30 26,764.69 1,141.96 4,976.93
2014-03-31 25,453.03 1,210.43 4,641.17
2013-12-31 24,360.02 1,215.67 4,390.92
2013-09-30 23,380.18 1,277.65 4,098.20
2013-06-30 21,984.06 1,021.37 3,889.63
2013-03-31 20,127.92 823.07 3,609.94
2012-12-31 18,958.92 717.76 3,391.40
2012-09-30 18,396.50 493.59 3,236.93

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hisense Home Appliances Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hisense Home Appliances Group used its assets less efficiently than the HK Consumer Durables industry average last year based on Return on Assets.
  • Hisense Home Appliances Group has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Hisense Home Appliances Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Durables industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hisense Home Appliances Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hisense Home Appliances Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hisense Home Appliances Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hisense Home Appliances Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hisense Home Appliances Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hisense Home Appliances Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Hisense Home Appliances Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hisense Home Appliances Group Company Filings, last reported 3 months ago.

SEHK:921 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 8,323.56 0.00 3,947.88
2018-12-31 7,889.41 0.00 4,188.67
2018-09-30 7,548.09 0.00 4,551.50
2018-06-30 7,168.00 200.00 4,794.48
2018-03-31 7,255.40 200.00 2,457.08
2017-12-31 7,087.16 0.00 4,076.11
2017-09-30 6,699.73 0.00 4,317.67
2017-06-30 5,616.81 0.00 3,900.61
2017-03-31 5,611.29 0.00 3,281.99
2016-12-31 5,323.46 0.00 3,537.12
2016-09-30 5,088.30 74.70 2,308.86
2016-06-30 4,838.18 248.10 2,447.54
2016-03-31 4,644.55 372.26 989.02
2015-12-31 4,473.81 223.50 1,214.41
2015-09-30 4,386.55 210.31 815.06
2015-06-30 4,447.32 388.29 924.92
2015-03-31 4,142.69 326.48 925.88
2014-12-31 3,940.58 253.99 870.83
2014-09-30 3,997.14 225.89 582.33
2014-06-30 3,867.65 501.74 739.98
2014-03-31 3,416.10 304.04 423.34
2013-12-31 3,183.34 191.68 540.90
2013-09-30 3,075.76 89.11 435.65
2013-06-30 2,609.40 82.80 528.46
2013-03-31 2,111.05 0.00 426.95
2012-12-31 1,873.21 30.31 526.74
2012-09-30 1,762.88 910.40 583.71
  • Hisense Home Appliances Group has no debt.
  • Hisense Home Appliances Group has no debt compared to 5 years ago when it was 9%.
  • Hisense Home Appliances Group has no debt, it does not need to be covered by operating cash flow.
  • Hisense Home Appliances Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Hisense Home Appliances Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hisense Home Appliances Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.57%
Current annual income from Hisense Home Appliances Group dividends. Estimated to be 4% next year.
If you bought HK$2,000 of Hisense Home Appliances Group shares you are expected to receive HK$51 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hisense Home Appliances Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • Hisense Home Appliances Group's dividend is below the markets top 25% of dividend payers in Hong Kong (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:921 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Hong Kong Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 2.7%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:921 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.58 2.00
2020-12-31 0.47 3.00
2019-12-31 0.40 3.00
SEHK:921 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-06-27 0.303 2.383
2018-06-26 0.440 4.812
2017-03-29 0.300 2.208
2016-04-05 0.150 1.519

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hisense Home Appliances Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Hisense Home Appliances Group only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Hisense Home Appliances Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Hisense Home Appliances Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hisense Home Appliances Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hisense Home Appliances Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ye Guo Tang
COMPENSATION CN¥3,273,400
AGE 56
TENURE AS CEO 0.5 years
CEO Bio

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 June 26, 2006 and has been its President since January 23, 2019. Mr. Tang served as an Acting Secretary of Hisense Kelon Electrical Holdings Company Limited since June 2006 and also served as its President from September 19, 2005 to June 2006. He served as a Deputy General Manager and General Accountant of Qingdao Hisense Electric Co., Ltd. (Hisense Electrical Appliance), the General Manager of Hisense Electrical Appliances from November 1999 to August 2003, an Assistant to the President and later Vice President of Hisense Group. Earlier, Mr. Tang served as a Vice President of Hisense. He served as a General Manager of Hisense Air-Conditioner. He served as the Chairman of Hisense Air-Conditioner. Mr. Tang served as a Director of Hisense Electrical Appliances from August 2003 to September 2005.

CEO Compensation
  • Ye Guo's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ye Guo's remuneration is about average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Hisense Home Appliances Group management team in years:

2.3
Average Tenure
51
Average Age
  • The tenure for the Hisense Home Appliances Group management team is about average.
Management Team

Ye Guo Tang

TITLE
Executive Chairman & President
COMPENSATION
CN¥3M
AGE
56
TENURE
0.5 yrs

Yun Li Wang

TITLE
VP & Executive Director
COMPENSATION
CN¥2M
AGE
46
TENURE
3.1 yrs

Shao Qian Jia

TITLE
Executive Director
COMPENSATION
CN¥3M
AGE
46
TENURE
2.3 yrs

Xiaolu Chen

TITLE
CFO & Chief Accountant
AGE
42
TENURE
0.5 yrs

Lan Lin

TITLE
Executive Director
AGE
61

Hui Zhong Dai

TITLE
Executive Director
AGE
53

Tak Fong Wong

TITLE
Company Secretary
AGE
51
TENURE
7.1 yrs

Qian Mei Huang

TITLE
Secretary of the Board
AGE
35
TENURE
2.3 yrs

Li Fei

TITLE
Executive Director
AGE
56
Board of Directors Tenure

Average tenure and age of the Hisense Home Appliances Group board of directors in years:

3.1
Average Tenure
54.5
Average Age
  • The tenure for the Hisense Home Appliances Group board of directors is about average.
Board of Directors

Ye Guo Tang

TITLE
Executive Chairman & President
COMPENSATION
CN¥3M
AGE
56
TENURE
13.1 yrs

Yun Li Wang

TITLE
VP & Executive Director
COMPENSATION
CN¥2M
AGE
46
TENURE
3.2 yrs

Shao Qian Jia

TITLE
Executive Director
COMPENSATION
CN¥3M
AGE
46
TENURE
4.1 yrs

Lan Lin

TITLE
Executive Director
AGE
61
TENURE
13.1 yrs

Hui Zhong Dai

TITLE
Executive Director
AGE
53
TENURE
3.1 yrs

Li Fei

TITLE
Executive Director
AGE
56
TENURE
0.1 yrs

Zhen Shun Liu

TITLE
Chairman of Supervisory Committee
AGE
49
TENURE
5.5 yrs

Jin Quan Ma

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥140K
AGE
76
TENURE
2.5 yrs

Geng Shen Zhong

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥70K
AGE
58
TENURE
1.1 yrs

Sai Kit Cheung

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥100K
AGE
47
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
26. Jul 18 Buy Qingdao Hisense Electric Holdings Company Limited Company 23. Jul 18 23. Jul 18 194,000 HK$7.33 HK$1,422,019
X
Management checks
We assess Hisense Home Appliances Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hisense Home Appliances Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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.

Details
Name: Hisense Home Appliances Group Co., Ltd.
921
Exchange: SEHK
Founded: 1984
CN¥16,116,155,864
1,362,725,370
Website: http://www.kelon.com
Address: Hisense Home Appliances Group Co., Ltd.
No. 8, Ronggang Road,
Ronggui Street,
Foshan,
Guangdong Province, 528303,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SZSE 000921 Domestic Shares Shenzhen Stock Exchange CN CNY 07. Jun 1999
SHSC 921 Domestic Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 07. Jun 1999
XSEC 000921 Domestic Shares Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect CN CNY 07. Jun 1999
SEHK 921 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 22. Jul 1996
OTCPK HISE.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 22. Jul 1996
DB GKE Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 22. Jul 1996
SZSC 921 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 22. Jul 1996
Number of employees
Current staff
Staff numbers
32,858
Hisense Home Appliances Group employees.
Industry
Household Appliances
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 01:08
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.