In the A-share market, the dividend of Gree Electric Appliances Inc.Of Zhuhai(000651) is notoriously generous.
On January 24, Gree Electric Appliances Inc.Of Zhuhai(000651) disclosed the shareholder return plan for the next three years. From 2022 to 2024, the annual cash dividend of the company shall not be less than 50% of the net profit of the current year.
For the above dividend plan, many investors gave positive comments. Some investors said that “conscience company” and others said that Gree has abundant cash flow and is not short of money.
Statistics show that since its listing in 1996, by 2020, Gree Electric Appliances Inc.Of Zhuhai(000651) has implemented cash dividends for 22 times, with a cumulative dividend of 84.3 billion yuan; During this period, the accumulated net profit was 190.752 billion yuan, with a dividend rate of 44.2%. In addition to generous dividends, the share repurchase of Gree Electric Appliances Inc.Of Zhuhai(000651) has also been very fierce in recent years. The company has repurchased 27 billion yuan of shares since 2020, surpassing Midea Group Co.Ltd(000333) , becoming the “king of repurchase” of a shares.
The latest share price of Gree Electric Appliances Inc.Of Zhuhai(000651) is 38.85 yuan / share, with a total market value of about 229.8 billion yuan, less than half of Midea Group Co.Ltd(000333) .
Gree Electric Appliances Inc.Of Zhuhai(000651) clarify the dividend expectation
On January 24, Gree Electric Appliances Inc.Of Zhuhai(000651) disclosed the shareholder return plan for the next three years (2022-2024): the company will make profit distribution twice a year from 2022 to 2024, namely annual profit distribution and medium-term profit distribution. On the premise that the company’s cash flow meets the company’s normal operation and long-term development, the total annual cumulative cash dividends of the company from 2022 to 2024 shall not be less than 50% of the net profit of the year.
Gree Electric Appliances Inc.Of Zhuhai(000651) said that if the return plan needs to be adjusted according to the company’s production and operation, investment planning and long-term development, or due to major changes in the external business environment and its own business conditions, the company can put forward an adjustment plan without violating the profit distribution policy determined in the articles of Association, and the adjustment plan needs to be approved by the board of directors The shareholders’ meeting deliberated and approved, and the independent directors expressed independent opinions.
According to the latest financial report data, in the third quarter of 2021, Gree Electric Appliances Inc.Of Zhuhai(000651) had an operating revenue of 47.083 billion yuan, a year-on-year decrease of 16.5%; The net profit was about 6.188 billion yuan, a year-on-year decrease of 15.66%; The company’s revenue and performance in the third quarter were lower than market expectations. In response to the above data, some analysts said that in combination with the stable price increase of air conditioning capacity, it is speculated that the decline in revenue in the third quarter of Gree Electric Appliances Inc.Of Zhuhai(000651) may be related to the fluctuation of other business income items dominated by the purchase and sale of raw materials.
In the first three quarters of 2021, Gree Electric Appliances Inc.Of Zhuhai(000651) achieved a cumulative revenue of 138.135 billion yuan, a year-on-year increase of 9.73%; The net profit was 15.645 billion yuan, a year-on-year increase of 14.21%. By the end of September 2021, the monetary capital of the company was 119.532 billion yuan.
dividend and repurchase are never soft
The dividend of Gree Electric Appliances Inc.Of Zhuhai(000651) has been very generous since its listing.
Data show that since its listing in 1996, as of 2020, the company has implemented cash dividends 22 times, with a cumulative dividend of 84.3 billion yuan, ranking first in the household appliance industry. During this period, the accumulated net profit was 190.752 billion yuan, with a dividend rate of 44.2%.
In addition to generous dividends, share repurchases of Gree Electric Appliances Inc.Of Zhuhai(000651) have also been made frequently in recent years. In April 2020, Gree Electric Appliances Inc.Of Zhuhai(000651) launched the repurchase program for the first time in history, with the repurchase amount of 3-6 billion yuan; The second phase of repurchase was launched in October 2020, and the repurchase amount was also 3-6 billion yuan. The third phase of repurchase was launched in May 2021, with a repurchase scale of 7.5 billion yuan to 15 billion yuan.
From the most implementation results, the above three-phase repurchase schemes were completed at the top level, that is, the first phase repurchased 6 billion yuan, the second phase repurchased 6 billion yuan and the third phase repurchased 15 billion yuan. The cumulative repurchase amount of phase III reached 27 billion yuan, surpassing Midea Group Co.Ltd(000333) , becoming the “king of repurchase” of a shares.
however, judging from the stock price performance of the secondary market, such a high repurchase did not reverse the decline of the stock price. Since the high of 66.79 yuan / share in early December 2020, Gree Electric Appliances Inc.Of Zhuhai(000651) share price has been continuously adjusted for one year. As of November 30, 2021, Gree Electric Appliances Inc.Of Zhuhai(000651) share price was reported at 34.56 yuan / share, the higher point was corrected by 48%, and the market value evaporated by more than 190 billion yuan.
From the beginning of December 2021, Gree Electric Appliances Inc.Of Zhuhai(000651) share price finally stopped falling and maintained the upward trend of shock. As of the closing on January 24, Gree Electric Appliances Inc.Of Zhuhai(000651) was reported at 38.85 yuan / share, with a total market value of about 229.8 billion yuan, but the market value was less than half of Midea Group Co.Ltd(000333) .
organization: with long-term configuration value
According to the industry online data, the air conditioning industry delivered 152.59 million units in 2021, a year-on-year increase of 7.9%, a slight increase of 1.3% compared with 2019 before the epidemic; Among them, 84.7 million units were shipped for domestic sales, with a year-on-year increase of 5.5% and a decrease of 8.1% compared with the same period in 2019. The export market achieved 67.89 million units, with a year-on-year increase of 11.0% and 16.1% compared with 2019.
In terms of domestic sales, Gree and Midea delivered 31.65 million units / 28.18 million units respectively in the whole year, with a year-on-year increase of 6.8% and 9.9% respectively, both better than the industry average; In terms of absolute value, Gree still maintains a leading position, with a total shipment share of 70.6%, an increase of 1.8 percentage points over 2020, and the concentration is further improved.
In terms of export, Gree and Midea achieved export sales of 11.09 million units and 25.78 million units respectively, with a year-on-year increase of 3.8% and 15% respectively. Gree’s export performance was weaker than the industry average.
According to the industry online forecast data, the domestic shipments of household air conditioning industry will decline by 2.1% in 2022, and the overall demand is expected to continue the weak trend; In terms of export, affected by factors such as the high export base and the increase of inventory in overseas channels, it is expected that the shipment volume will decline by 3.7%.
Shanghai Shenyin Wanguo Securities Research Institute pointed out that considering that the overall demand expectation of air conditioning is still relatively low, and the copper price is still at a historically high level, Gree Electric Appliances Inc.Of Zhuhai(000651) from the perspective of revenue and cost, the company lowered its profit forecast. It is expected that the net profit attributable to the parent company from 2021 to 2023 will be 23.26 billion yuan, 27.77 billion yuan 31.02 billion yuan (the previous value was 24.49 billion yuan, 28.09 billion yuan and 31.67 billion yuan), with a year-on-year increase of 4.9%, 19.4% and 11.7% respectively, corresponding to the current P / E ratio of 10 times, 9 times and 8 times respectively. The current valuation level of the company has great long-term allocation value and maintains the “buy” rating.
It is worth noting that when the main industry of air conditioning is relatively depressed, Gree Electric Appliances Inc.Of Zhuhai(000651) is adding weight to the new energy business.
At the end of August last year, Gree Electric Appliances Inc.Of Zhuhai(000651) entered the field of new energy vehicle batteries through the acquisition of Yinlong new energy. At that time, some brokerage analysts said that with Gree’s holding, Yinlong’s internal governance and production and operation are expected to recover rapidly. Superimposed on the fact that the new energy industry is currently in the dividend period driven by policy + supply and demand, and the release of synergy between the two sides, Yinlong’s subsequent business expansion is expected, and Gree’s new energy business proportion is expected to continue to increase.
In mid November last year, Gree new energy laid out the next city. At that time, Gree Electric Appliances Inc.Of Zhuhai(000651) announced that the company planned to transfer Zhejiang Dun’An Artificial Environment Co.Ltd(002011) 270 million shares of A-share listed company for 2.190 billion yuan, with a transfer price of 8.10 yuan per share. Meanwhile, Gree Electric Appliances Inc.Of Zhuhai(000651) plans to subscribe for 139 million shares of Zhejiang Dun’An Artificial Environment Co.Ltd(002011) non-public offering to specific objects in cash. The price of non-public offering is 5.81 yuan / share, and the subscription price is about 810 million yuan. After the completion of this transaction, Gree Electric Appliances Inc.Of Zhuhai(000651) will hold Zhejiang Dun’An Artificial Environment Co.Ltd(002011) 410 million shares, accounting for 38.78% of the total share capital of Zhejiang Dun’An Artificial Environment Co.Ltd(002011) after the issuance. Zhejiang Dun’An Artificial Environment Co.Ltd(002011) will become the holding subsidiary of Gree Electric Appliances Inc.Of Zhuhai(000651) . It is understood that Zhejiang Dun’An Artificial Environment Co.Ltd(002011) ‘s air conditioning and refrigeration components business has a deep technical accumulation and good production and manufacturing capacity. The product matrix related to new energy heat manager is perfect, and has carried out business cooperation with many well-known enterprises in China.
