Gree Electric (000651) Annual Report Comments: Dividend Rate Recovers Nearly 50%, Continues to Continue and Raises Expectations

Gree Electric (000651) Annual Report Comments: Dividend Rate Recovers Nearly 50%, Continues to Continue and Raises Expectations

Leading revenues have been increasing overall, maintaining the “Buy” rating. On April 28, 2019, the company disclosed its 2018 annual report, which was in line with expectations. The total operating income in 2018 was 2000.

2.4 billion, +33 per year.

33%, net profit attributable to mother 262.

03 trillion, +16 a year.

97%, net profit after deduction 杭州夜生活网 is +20.


The company intends to distribute a cash dividend of 15 yuan for every 10 shares to all shareholders (the company’s mid-2018 dividend is 36.

09 million yuan, the annual report 2018 dividends of 90.

24 ppm with a 10-year dividend payout ratio of 48.

twenty one%).

We expect the company’s EPS to be 5 in 2019-2021.

06, 5.

97, 7.

07 yuan, maintaining the company’s “Buy” rating.

The company’s main product power, channel power and brand power continue to lead, and its revenue has maintained rapid growth. The company’s total operating income in 2018 was 2000.

24 ppm, +33 a year.


Among them, 2018Q4 total revenue was 499.

74 trillion, +31 ten years ago.


In terms of products in 2018, the air-conditioning business revenue was 1556.

820,000 yuan, +26 a year.

15% (According 杭州桑拿 to industry online data, the company’s total sales of air conditioners in 2018 +7.


Among them, domestic sales +3.

4%, export +18.


The total market share reached 32.

8%, 0 per year.

3PCT), income from household electrical appliances business 37.

940 thousand yuan, ten years +64.

90%, smart equipment income 31.

09 million yuan, +46 for ten years.


By region, the main domestic revenue was 1483.

2.3 billion, +30 a year.

46%, overseas main income 222.

70 trillion, +20 for ten years.42%.

The price of raw materials is running at a high level, depreciation is accelerating, and the gross profit margin is under pressure. The price of raw materials has remained high in 2018. At the same time, the company replaced some fixed asset depreciation periods in 2018, and the gross margin level has declined.

The company’s gross profit margin in 2018 was 30.

89% every year -2.


Among them, in the fourth quarter of 2018, the gross profit margin was 31.

22% per year -7.


In terms of products, the gross profit margin of the air-conditioning business was 36.

48% every year -0.

59PCT, gross margin of household appliances is 18.

23% per year -2.

42PCT, gross margin of smart equipment business is 6.

48%, ten years +0.


In terms of different regions, the main domestic gross profit margin was 37.

23% per year -2.

68PCT, overseas main gross margin level is 13.

34%, ten years +2.


Strengthen sales control and reduce the sales expense ratio, increase the value of employees’ remuneration, and manage the R & D expense ratio.

45%, a year -1.

66PCT, “gross profit margin-sales expense ratio” is 21.

44%, down by 1 every year.


At the same time, the company increased employee compensation, increased depreciation stalls, etc., and the management and R & D expense ratio continued to increase, of which the management expense ratio reached 2.

18%, ten years +0.

54PCT, R & D expense ratio reached 3.

49%, ten years +1.


At the same time, due to exchange rate fluctuations, the company’s exchange losses and gains decreased by 13.

$ 7.5 billion with a budgeted financial cost of -9.

4.8 billion.

In 2018, the company achieved net profit of 262.

03 trillion, +16 a year.

97%, of which, in 2018Q4, net profit attributable to mother was 50.

840,000 yuan, at least -26.


The leader maintains its advantage and is optimistic about future growth. We predict that the company’s EPS for 2019-2021 will be 5.

06, 5.97, 7.

07 yuan, the average PE of the reference industry in 2019 is 12.

70 times.

Considering 1) the governance structure or improvement, the company is expected to accelerate the development of integration leader.

2) The dividend rate has recovered to nearly 50%, which is expected to further repair the company’s assessment.

3) MSCI’s increase in the A-share segmentation factor and foreign expectations of replacement have driven the company’s expectations.

4) Compared with the three major white power companies, Gree PE TTM estimates that it is expected to be restored to the 14-16X range in the future. If new shareholders in the future have significantly improved the company’s business synergy, the company’s size may be further increased.

Recognition given to the company 14 in 2019?
16xPE estimates, corresponding to a target price of 70.


96 yuan / share, maintain “Buy” rating.

Risk Warning: Foreign exchange inflow is lower than expected.

Macroeconomic downturn.

Land impact may exceed expectations.