0,000 clusters of green and red. On August 31, Gree Electric Appliances once rose by nearly 5%, becoming one of the few rising varieties in A-share market. It happened to be the day before yesterday that it released its semi-annual report.
Specifically, the company achieved operating income of 95.222 billion yuan in the 2022 semi-annual period, a year-on-year increase of 4.58%; net profit attributable to shareholders was 11.466 billion yuan, a year-on-year increase of 21.25%; basic earnings per share 1.94 yuan.
overall is underestimated
Gree Electric Appliances is an international home appliance company integrating R&D, production, sales and service. It has three major brands: Gree , TOSOT, and Jinghong. It mainly sells household air conditioners, central air conditioners, air energy water heaters, , mobile phones, household appliances, refrigerators and other products. It once created a legendary story in the home appliance industry under the leadership of Ms. Dong Mingzhu , but with the fierce interpretation of the industry's competitive landscape, rising stars have taken the lead in diversified product lines, and Gree has shined slightly inferior in the past.
In recent years, as a variety of real estate industry chain, home appliances, as a variety of real estate industry chain, have been seriously affected because the prosperity cycle of the real estate industry has passed. In addition, the cost pressure of upstream raw materials, the industry's profits have been severely hindered.
data shows that the central value space is 35%, ranking 6th. The central value is 41.40 yuan, and the stock price is running in the opportunity zone. Although the industry is bleak, the company is still at a relatively undervalued level.
Gree Electric Appliances Company Valuation Chart
Source: Dianzhang Finance
Gree's Luck and Unfortunately
In this regard, the author believes that companies like Gree Electric Appliances are lucky and unfortunate. Fortunately, as a good company, it has good prices. The reason for a good company is that Ms. Dong Mingzhu has a high management level and the company is still a core asset. If the company's quality is more important in the process of market adjustment, it is relatively safer.
Unfortunately, in A shares, , the company's performance does not rise, and I believe many investors will be very confused. We often see companies with loss-making performance start to rise rapidly, just like the day Qi Lithium during the loss-making performance period, many friends dare not buy it when they see the loss of performance. In fact, it is like a child who scored 40 points suddenly got 60 points, and the market is willing to give him rewards. And he has really scored more than 90 points now, and even if you scored 95 points, the market feels that it is natural.
Therefore, A-shares pursue a process from 0 to 1, and only this period of profit is the richest. The process from 1 to 10 is often difficult to obtain excess returns. Many investors do not understand this truth. If you agree, you can send 666 waves to let the author know.
Remember not to go to places with a lot of people
More importantly, the rule of A-shares is "not to go to places with a lot of people". Just look at the crazy new energy in the early stage. At that time, everyone flocked to them, and the craziest time was when they reached their peak. Gree Electric Appliances was also loved by many value investment friends in the early stage, but the industry is cyclical, and many companies can always be in a high-profit cycle.
How to judge whether there are many people? We can refer to the number of shareholders. We found that since the end of the first quarter of 2021, the number of shareholders of Gree Electric Appliances has increased significantly, but the stock price has continued to decline. The same signs are more obvious.
Gree Electric Appliances shareholders chart
Source: Dianzhang Finance
More investors are immersed in the "value trap". In fact, we might as well wait for a better opportunity to appear. How do you understand this?
Love life, can invest, say your ideas, be your true self, like and forward it to everyone! Follow the author and present more exciting articles to everyone!
Li Wen’s employment certificate number: A0460120110001, Aniu Zhitou business license: 91370100724977116F.
Warning: If the article involves stock is only used as a case and does not constitute any recommendation! Operation based on this is at your own risk!
