Gree Electric (000651): Revenue growth stabilizes and dividends return as scheduled
Incident 2018 Gree Electric Appliances achieved operating income of 1981.
23 ppm, an increase of 33 in ten years.
61%; net profit attributable to mother was 262.
30,000 yuan, an increase of 16 in ten years.
97%; cash flow from operating activities 269.
410,000 yuan, an increase of 64 in ten years.
Our Analysis and Judgment (I) Revenue maintained rapid growth, and the leading air-conditioning company stabilized its revenue to maintain rapid growth.
In 2018, the company’s revenue increased by 33 in ten years.
61%, continue to lead in the home appliance industry.
In terms of different products, air-conditioning is the subsidiary of the company’s main product, but its revenue accounted for a small margin.
In 2018, the company’s air-conditioning revenue was 1556.
82 million, an increase of 26 every year.
15%, accounting for 78% of total operating income.
58%, a decrease of 4 from 17 years.
Industry online data shows that the company’s air-conditioning business has obvious advantages, and its production and sales have ranked first in the domestic air-conditioning industry for 24 consecutive years.
The company’s household electrical appliances and intelligent equipment business have developed rapidly, with operating income of 37 in 2018.
9.4 billion and 31.
09 billion, an increase of 64 each year.
9% and 46.
19%, accounting for 1 in total operating income.
91% and 1.
57%, an increase of 0 from the previous year.
36pct and 0.
We believe that the decrease in the proportion of the company’s air-conditioning revenue is mainly due to two reasons, which led to the acceleration of the growth rate of the air-conditioning industry in 2018 and the acquisition and consolidation of Hefei Jinghong for the company.
By region, the company’s domestic sales revenue in 2018 was 1483.
23 ppm, an increase of 30 per year.
46%, accounting for 74% of operating income.
86%, down by 1 from the previous period.
81pct; operating income of the company’s export business was 222.
70 ppm, an increase of 20 per year.
42%, accounting for 11.
24%, down by 1 from the previous period.
23pct.From the data point of view, the company’s domestic and foreign sales revenue ratios continue to change. We believe that the company’s expansion and expansion of overseas markets will help the company’s sales revenue to maintain a steady increase.
In terms of different channels, the company deeply cultivates offline channels and develops online layout.
As of the end of 2018, the company’s outlets had 4 trillion yuan, an annual increase of 12.
In addition, the company conducted in-depth cooperation with JD.com and Ali to provide diversified products and achieved better results. In 2018, Gree’s energy-efficient alternative footprint in JD.com and Tmall platform increased by 9 pct and 5 respectively.
In terms of quarters, the company’s operating income for Q1 / Q2 / Q3 / Q4 in 2018 was 400.
7.4 billion, with short-term growth rates of 33.
29% / 30.
15% / 38.
46% / 32.
11%, net profit attributable to mothers was 55.
8.2 billion, 72.
25 billion, 83.
12 billion, 50.
8.4 billion, the previous growth rate was 39.
The company’s Q4 net profit growth was negative, mainly due to the increase in the proportion of overseas sales and the prominent increase in research and development expenses.
(II) The company’s profitability is stable, and the cash flow from operating activities has increased significantly. In 2018, the company’s gross profit margin was 30.
23%, a decline of 2 per year.
We think the decline in the company’s gross profit margin was mainly due to the rise in domestic raw material prices.
In 2018, the company’s air-conditioning operating income increased by 26 each year.
15%, less than the increase in the cost of air-conditioning business, the gross profit margin of air-conditioning drops by 0 every year.
In addition, the decline in gross profit margin of the company’s domestic sales in 2018 decreased by 2%.
68%, gross margin of export business increased year by year2.
81%. The decline in the gross profit margin of domestic sales led to a decline in the company’s overall gross profit margin.
Net sales margin of the company in 201813.
31%, down by 1 every year.
87pct, less than the decline in gross profit margin.
We think the reason is the decline in the company’s sales expense ratio and financial expense ratio.
Among them, the company’s selling expense ratio is from 11.
24% dropped to 9.54%, financial expenses decreased by 319 due to the increase in exchange income.
Company management expenses and R & D expenses increase by 77 each year.
91% and 93.
18%, mainly due to the increase in employee compensation, material consumption, depreciation and amortization. In terms of cash flow, the company’s net cash generated from operating activities in 2018 was 269.
41 million, an increase of 64 every year.
9%, the company’s operating quality is better.
(3) The cash dividend return plan for the company’s 2018 profit distribution plan is to pay a cash dividend of 15 四川耍耍网 yuan (including tax) to every 10 shares for all shareholders, and the semi-annual profit distribution plan is a cash dividend of 6 yuan (including tax) to every 10 shares for all shareholdersThe proportion of cash dividends to the net profit attributable to ordinary shareholders of listed companies was 48.
The company did not pay any cash dividends in 2017. In 2016, the cash dividends accounted for 70% of the net profit attributable to ordinary shareholders of listed companies.
Although the company’s cash dividends were less than expected, the trend of gradual return was obvious.
(IV) Increasing R & D investment and accelerating diversified layout The company’s R & D investment in 2018 was 72.
68 ppm, an increase of 26 in ten years.
04%, the number of R & D personnel is 13.
30%, increase by 2 every year.
The large amount of research and development has promoted the company’s diversified layout and realized the pace of intelligent manufacturing and industrial upgrading.
In the intelligent equipment sector, the company has provided six specialized intelligent equipment companies with more than a hundred specifications of intelligent products. In the precision mold sector, Gree’s mold products have exceeded the domestic industry average in a variety of parameters., Innovation and automation have become industry leaders; in the smart home sector, the company’s “Gree Zero Carbon Healthy Home” released at the 2018 Chongqing International Expo Center Exhibition has achieved key home appliance linkage based on key technologies.
The operating income of the company’s intelligent equipment increased by 46 compared with the previous year.
19%, we believe that in the context of the company’s continued expansion of R & D and promotion, its main products will remain highly competitive, revenues from smart equipment and other sectors will further increase, and the company’s product structure will be more reasonable.
The investment suggestion is that the company is a leading enterprise in the home appliance industry, with obvious competitive advantages and a solid industry as a whole. Its air-conditioning market share has been steadily occupying the leading position in the home. With the rapid growth of the air-conditioning industry in 2018, its revenue has maintained rapid growth.
In addition, through the acquisition of Hefei Jinghong and more R & D expansion of smart equipment, the company will gradually reduce the proportion of air-conditioning revenue and continue to accelerate diversified development. The future development will be more stable.
In 2018, the company’s dividends will return as scheduled, the investment value will increase, and the corporate governance structure is expected to be further optimized with the adjustment of the shareholding structure.Ten thousand dollars, corresponding EPS is 4.
44 and 6.
17 yuan, maintain the “recommended” level.
Risks indicate fluctuations in the real estate market, fluctuations in the prices of factors of production, and increased competition in the industry.