Looking back in 2022, the stock prices of many companies are falling, and Gree is no exception. The current market value is about 180 billion, but according to the numbers shown in the ledger, some people don't understand. Gree has more than 150 billion in cash, why is the market value only 180 billion?
Gree's net cash should be around 100 billion, and its profits in recent years have been around 20 billion, but its market value is only 180 billion. Dong Mingzhu can help Gree have such good performance, why can't it help Gree increase its stock price?
It is undeniable that Dong Mingzhu’s abilities are outstanding, and her contribution to Gree is obvious to all. However, Gree’s market value cannot be affected by one or a few people. It is mainly determined by the general environment.
In fact, it’s not just Gree. The market value of many large companies has evaporated this year. Alibaba’s market value has evaporated from US$800 billion in the past to only US$200 billion. Due to the economic environment, capital issues, and the impact of the epidemic, many large companies are unable to get out of the trough in a short period of time.
In addition, everyone knows that Gree relies on air conditioners to drive performance. The real estate market is good, which means that more people are buying houses, and air conditioners are also selling well. However, after all, the market space is limited, and after the boom cycle, there will be a downturn.
There is another reason, and that is Dong Mingzhu’s attitude. Should she lead Gree to please the capital market and make some changes or adjustments to meet the needs of major shareholders? However, Dong Mingzhu is relatively conservative in this regard. She does not want to take too many risks. Although this is very safe, it also loses better opportunities.
In fact, Dong Mingzhu has also been trying new things in recent years, such as small household appliances, mobile phones, chips, etc., but there are very few successful cases. Dong Mingzhu always stops at it and does not continue to delve deeper. When encountering difficulties, she gives up.
Maybe Dong Mingzhu is also testing the waters, or maybe just to catch up with the trend, but she doesn’t really want to develop new projects in her heart. She still wants to concentrate on making air conditioners. In fact, this is also a good choice. After all, she can earn 20 billion in profits from selling air conditioners a year, which is really good. This is much better than most domestic companies.
So if you look at it this way, if Dong Mingzhu always sticks to this kind of development thinking, then he will not have much emotional fluctuations in the company's market value. To put it bluntly, he doesn't value it that much. It doesn't matter how much it is. It is estimated that not many people can have her level.
