1. Main data
ROE weighted 21.34%, 18.88% year-on-year, an increase of 2.46%;
revenue was 187.869 billion, a year-on-year increase of 11.69%, or 19.67 billion;
net profit was 23.064 billion, a year-on-year increase of 22.175 billion, an increase of 4.01%, or 889 million;
deducted non-net profit of 21.850 billion, a year-on-year increase of 20.286 billion, an increase of 7.71%;
net cash flow from operating activities was 1.894 billion, a year-on-year increase of 19.239 billion, an increase of -90.15%;
total assets were 319.598 billion, a year-on-year increase of 279.218 billion , an increase of 14.46%;
’s net assets are 103.652 billion, a year-on-year increase of 115.190 billion, an increase of -10.02%.
comment: This performance is acceptable, but the net cash flow of decreased. The company explained: It was mainly due to the increase in the net increase in cash for purchasing goods, receiving labor services, and customer loans and advances.
Judging from the cash flow report, cash used to purchase goods and receive services was 145.602 billion, an increase of 23.859 billion from 121.793 billion last year.
I personally speculate that in response to the increase in raw material prices, we cannot rule out the possibility of increasing inventory.
looks at the inventory again:
42.766 billion, 27.880 billion at the beginning of the period, an increase of 14.886 billion, an increase of 53.40%. Looking at the inventory structure:
raw materials were 10.169 billion, an increase of 1.599 billion, or 18.66% from 8.570 billion at the beginning of the period;
finished products were 26.553 billion, an increase of 15.657 billion, or 143.69% from 10.896 billion at the beginning of the period.
purchases of goods increase, inventory increases (including raw materials and finished products). From the above data, net operating cash flow decreases, which is logically self-consistent. The gross profit margin of
was 24.28%, which was 26.14% year-on-year, a decrease of 1.86 percentage points; the net profit margin of
was 12.15%, which was 13.25% year-on-year, a decrease of 1.1 percentage points.
comment: Despite the price increase of upstream raw materials, the net profit rate still remains at 12.15%, which shows that Gree has strong cost control capabilities.
During its peak period, Gree's net profit margin was between 14-15%, which is very "terrifying" for the manufacturing industry.
sales expenses were 11.582 billion, a year-on-year increase of -13.043 billion, an increase of -11.21%;
sales expense rate was 6.16%, a year-on-year decrease of 7.75%, a decrease of 1.59 percentage points;
administrative expenses were 4.051 billion, a year-on-year increase of 3.604 billion, an increase of 12.42%;
administrative expenses The rate was 2.16%, 2.14% year-on-year, an increase of 0.02 percentage points;
research and development expenses were 6.297 billion, a year-on-year increase of 6.052 billion, an increase of 4.03%.
revenue composition:
air conditioning: revenue of 131.713 billion, accounting for 70.11%, an increase of 13.96%;
household appliances: revenue of 4.882 billion, accounting for 2.60%, an increase of 7.96%;
industrial products: revenue of 3.195 billion, accounting for 1.70 %, an increase of 38.60%;
smart equipment: revenue of 858 million, accounting for 0.46%, an increase of 42.77%;
green energy: 2.907 billion, accounting for 1.55%, an increase of 42.77%;
other businesses: 43.028 billion, accounting for 22.90% , an increase of 13.92%.
comments:
1, air conditioning business is still the largest, accounting for 70.11%, accounting for 68.17% year-on-year, an increase of 1.94 percentage points;
2, domestic appliances only increased by 7.96%, still not much improvement;
3, industrial products, intelligence Equipment and green energy are growing rapidly, but their proportion is very small and they do not play a decisive role in increasing total revenue. Domestic sales of
: revenue of 122.305 billion, accounting for 65.10%, an increase of 10.78%; foreign sales of
: revenue of 22.535 billion, accounting for 10.78%, an increase of 12.56%.
comments: Gree’s internationalization is still on its way (self-owned brands account for 50%).
operating cost composition:
raw materials 86.227 billion, accounting for 88.27%;
labor costs 4.403 billion, accounting for 4.51%;
depreciation 1.734 billion, accounting for 1.78%;
energy 709 million, accounting for 0.73%.
comment: Judging from the above cost structure, raw material costs account for 88.27% of operating costs, and the main raw materials of the company's products are various grades of copper, steel, aluminum and plastic. Starting in 2020, the prices of raw materials such as copper and aluminum have risen rapidly and continue to run at a high level. The resulting cost pressure will have a certain impact on the company's operating performance.
important asset composition (ratio of total assets):
currency cash 116.939 billion, accounting for 36.59%;
accounts receivable 13.841 billion, accounting for 4.33%;
inventory 42.766 billion, accounting for 13.38%;
long-term equity Investment was 10.337 billion, accounting for 3.23%;
fixed assets were 31.188 billion, accounting for 9.76%;
construction in progress was 6.481 billion, accounting for 2.03%;
short-term borrowings were 27.618 billion, accounting for 8.64%;
long-term borrowings were 8.961 billion, accounting for 8.64% than 2.80%.
Other current liabilities 62.414 billion, accounting for 20.14%.
comments:
1. In recent years, the company has always had more than 100 billion yuan in cash assets;
2. Other current liabilities are 62.414 billion, a decrease of 1.968 billion from 64.382 billion in the previous year. Among them, sales rebates were 52.669 billion , a decrease of 3.139 billion from 55.808 billion in the previous year. The so-called "reservoir" of Gree is reflected here.
2. Industry data
According to the "2021 China Home Appliances Market Report" released by the Electronic Information Industry Development Research Institute, In 2021, my country's home appliance market will fully recover, with the retail scale reaching 881.1 billion yuan, a year-on-year increase of 5.7%, and the overall recovery will basically be pre-pandemic levels.
Air conditioner sales have returned to pre-epidemic levels, with exports becoming the main growth engine. According to industry online data, in 2021, home air conditioners sold 2,152.59 million units, a year-on-year increase of 7.9% , which was also slightly higher than the level in 2019; exports are the main growth engine for the home air conditioner industry, with 67.89 million home air conditioners exported in 2021, a year-on-year increase of 7.9%. An increase of 11.0%; domestic sales of were 84.7 million units, a year-on-year increase of 5.5%. In 2021, the sales of central air conditioners were approximately 123.2 billion yuan, a year-on-year increase of 25.4%.
China’s online channel home appliance retail sales once again exceeded offline sales. The growth rates of both online and offline markets have turned from negative to positive, and under the continued profound impact of the epidemic, my country's online channel retail sales accounted for 52.9% of the overall home appliance market in 2021, accounting for more than 50% for two consecutive years.
Popular home appliances are still the main sales force in the sinking market. There is still a big gap between the ownership of major home appliances per 100 households in rural areas and in cities. For example, air conditioners have 150 units per 100 urban households, but only 74 units in rural areas. The penetration rate of , , and in rural kitchen appliances, environmental appliances, and personal care appliances is even lower. With the continuous improvement of the consumption power of rural residents, the gradual improvement of network and logistics infrastructure, and the rapid integration of urban and rural home appliance consumption concepts, the sinking market has become the home appliance consumer market with the largest population base, largest area, and greatest potential in my country.
According to data released by "HVAC Information", in 2021 Gree central air conditioner is the only brand with a sales volume of more than 200 million in China's central air conditioning industry, achieving the "ten consecutive championships" in the central air conditioning market. Among them, in the multi-split Among them, Gree maintains its first place among national brands with a share of over 20%; among unit computers, Gree is far ahead of the second place with a share of 34.8%. According to the 2021 domestic sales volume data of household air conditioners in "Industry Online", Gree air conditioner ranked first in the industry with a share of 37.4%, leading the ranking for 27 years.
The above materials are all from the annual report.
3. Cash dividend
is planned to be based on 5.537 billion shares, with a dividend of 20 yuan (tax included) for every 10 shares. The total dividend is 11.073 billion, and the dividend rate is 48.01%. Since its listing, ’s cumulative dividends have reached 100.929 billion . Gree can be called a conscientious enterprise. At the same time, this is also in line with Dong Mingzhu 's character: he is only responsible for investors, not speculators.
Fourth, in the first quarter of 2022,
revenue was 35.260 billion, a year-on-year increase of 33.190 billion, an increase of 6.24%;
net profit was 4.003 billion, a year-on-year increase of 3.443 billion, an increase of 16.28%;
excluding non-net profit was 3.775 billion, a year-on-year increase of 3.299 billion, an increase of 1.440%. %;
’s net cash flow from operating activities was 3.394 billion, -4.266 billion year-on-year, an increase of 179.57%. The net profit of
is 94.30%, which is a significant improvement compared to the annual report. The company explained: It is mainly due to the increase in cash received from selling goods, providing services and other cash related to operating activities.
looked at the cash flow statement and found that cash received from selling goods and providing services was 34.938 billion, with a cash-to-cash ratio (compared to revenue) of 99.09%.
short-term borrowings amounted to 42.269 billion, an increase of 14.651 billion from 27.618 billion at the beginning of the year. It seems that Gree’s business strategy has also changed in recent years, because it turns out that President Dong has publicly stated that he will not borrow money to operate. However, taking advantage of low-cost bank funds is not an exaggeration as long as it remains at a moderate level. The characteristic of banks is that they "dislike the poor and love the rich". The more money-rich a company is, the more they want to lend you money, not to mention facing a cash cow like Gree.
5. Overall impression
1. The operating performance in 2021 is acceptable. It is even said that it is not easy to achieve such performance under the situation of economic downturn and rising raw material prices. Net profit in the first quarter increased by 16.28%, somewhat exceeding market expectations, because judging from the stock price trend, Gree Electric seems to be going bankrupt!
2. There are cycles in any industry. I personally feel that Gree Electric Appliances has been in the trough of the industry in recent years. Net profit has improved in the first quarter, but it is still too early to judge that the industry has an upward inflection point.
Gree Electric’s last performance peak occurred in 2018, with revenue of 200 billion, net profit of 26.2 billion, and ROE weighted 33.36%. However, it entered a downward cycle. When the next performance peak occurs, can it exceed the high point of 2018? Worth looking forward to for investors!
3. From the perspective of revenue composition, the air-conditioning business still accounts for 70%, and the small household appliances business has not yet effectively broken through. Although the revenue from several other new growth points is growing rapidly, because the total volume is too small, it has little impact on the entire revenue. The impact is still small.
As long as the air conditioner does not fail, Gree will not fail. This is the basic basis for investing in Gree. Of course, if Gree's second smile curve successfully breaks through in the future, it is possible to achieve "surprising" effects, but this is beyond my own circle of competence. I personally am not easy to judge. I just feel that there is some vague tendency. Good sign.
4. The current market value of Gree is 184.5 billion. If you have a lot of money (we investors, except for rich people like Buffett, no matter how much personal money we have, we will never have many ideas), if we buy all Gree, as long as Gree earns 200 per year 100 million yuan, you can achieve an investment return rate of 10.84%. Although this return rate is not high, it can be regarded as a reasonable investment return. Of course, the premise is that Gree must continue to earn more than 20 billion every year in the future.
5. I have said that for companies like Gree, I regard them as relatively mature companies (don’t expect explosive returns when investing in relatively mature companies), and relatively mature companies are required to pay dividends, and the dividends should be higher. The more the merrier.
will pay a dividend of 2 yuan per share (tax included) in 2021. Based on the current 31.21 yuan/share, the dividend income can reach 6.41% (tax included). From an investment perspective, I certainly hope that Gree’s stock price will rise sharply (this is what I mean, unlike some investors who are pretending to be calm or pretentious), but if I calm down and think about it, it may not be a bad thing if the stock price does not rise. , in this way, I can continue to buy a relatively large number of shares with dividends. Therefore, my only hope now is that Gree’s dividend money will arrive soon, because the most lacking thing in my account now is money.
and above are just personal opinions and do not constitute investment advice!
Remember: It is easy to copy homework, difficult to copy system, and even harder to copy mood!
