Share price still not out of the downward channel main reason:1. Gree performance is less than expected, the two years of transition encountered difficulties, is not optimistic about the institutions;2. Gree valuation is not low, this performance is not able to support the current market value;3. buyback shares does not represent the The stock will rise, the stock rises need to be recognized by the market, otherwise it is all a flash in the pan.
GREEK Electric Appliances announced that as of August 31, 2021, the company's third phase of the repurchase program has been through the repurchase of the special securities account in the form of centralized bidding to repurchase a cumulative total of 250 million shares of the company's shares, accounting for the company's total share capital of 4.2288%, the highest traded price of 56.11 yuan/share, the lowest traded price of 42.90 yuan/share, the total amount paid was 12.469 billion yuan.
Since December 2020, Gree Electric's share price continued to decline, the company's market value has evaporated more than 140 billion yuan from the highest point. In this regard, the company intensively launched three share repurchase program.
Geli Electric's repurchase speed is acceleratingData shows that the company's first phase of repurchase began in April 2020, ended in February 2021, took 10 months to repurchase 6 billion yuan, the highest traded price of about 60 yuan / share, the lowest traded price of about 53 yuan / share;
The second phase of the repurchase began on February 24 this year, ended on May 18, took three months to repurchase 6 billion yuan, the highest traded price of about 62 yuan / share;
The second phase of repurchase began on February 24 this year, ended in May 18, took three months to repurchase billion yuan, the highest transaction price of about 62 yuan / share, the lowest transaction price of about 56 yuan / share.
And the third this repurchase faster. May 31, Gree Electric third phase of the repurchase plan to carry out the first repurchase, so far three months of time, has cost 12.469 billion yuan. Gree Electric third phase of the repurchase plan ceiling of 15 billion yuan, there is still about 2.5 billion yuan of space, this repurchase whether the top is still to be seen.
The 2021 interim cash flow statement shows that Gree Electric's ending cash balance is 30 billion yuan, which can also continue to support its buyback. In February this year, the United States Group (000333.SZ) proposed a maximum of 14 billion yuan of repurchase plan, known as the largest repurchase in the history of A shares. If Gree Group this top buyback, will surpass the Midea Group.
Another noteworthy thing is that on August 31, midday Gree Electric issued an announcement that the company through participation in the judicial auction public bidding, with a price of 1.828 billion yuan bidding for 336 million shares of Yinlong New Energy; and with Dong Mingzhu signed a voting rights entrustment agreement with effective conditions, Dong Mingzhu will be held in Yinlong New Energy, 193 million shares corresponding to the Dong Mingzhu entrusted the Company to exercise the voting rights corresponding to the 193 million shares of Yinlong New Energy held by her.
After the completion of this transaction, Gree Electric will control the voting rights corresponding to 529 million shares of Yinlong New Energy, accounting for 47.93% of the total share capital of Yinlong New Energy, Yinlong New Energy will become a controlling subsidiary of Gree. For the owner of Yinlong New Energy, Gree Electric Appliances said that the transaction is an important initiative to respond positively to the national "double carbon" goal, the implementation of "based on the home appliance industry, and steadily expand the diversified emerging business" development ideas.
The news came out, the day after the afternoon Gree shares immediately pulled up, but then quickly recovered, and eventually closed up 0.24%, and September 1, the home appliance industry Haier Zhijia (up more than 7%), the United States Group (up 4.77%) have seen a good increase, but Gree only rose 1.36%.
The United States, Gree, said they are the firstIn the first half of this year, Gree Electric realized operating income of 91.05 billion yuan, net profit of 9.46 billion yuan, a year-on-year growth rate of 31.01% and 48.64%, respectively.
Contrast peer Midea Group, the first half of the year, Midea Group realized total operating income of 174.8 billion yuan, net profit of 15.01 billion yuan, year-on-year growth rate of 25.14% and 7.76%, respectively. Although the first half of the Midea Group's growth rate of these two data is less than Gree, but in fact, the Midea Group revenue has exceeded the same period in 2019, 154.3 billion yuan, and the net profit is close to the level of the other time.
Interestingly, both Midea Group and Gree Electric both said in their half-yearly reports that they had the largest air conditioning market share. The United States is based on data from Aowei Yunwang, showing that in the first half of 2021, the United States of America's main home appliance categories in the domestic market share ratio have achieved varying degrees of improvement, of which the omni-channel share of household air-conditioning products significantly increased, online and offline market share are ranked the first in the industry, respectively, to 37.6% and 36.5%.
Geli, on the other hand, cited two data on central air conditioning and household air conditioning: according to data released by HVAC News, in the first half of 2021, Gree central air conditioning ranked first with a market share of 16.2%, and continued to realize the industry leader; according to statistics from Industry Online, in the first half of 2021, Gree's household air conditioning accounted for 33.89% of the domestic sales and ranked first in the home appliance industry.
From the data disclosed in the semi-annual report, the air conditioning business is still the most important source of revenue for Gree, Gree air conditioning revenue of 67.194 billion yuan in the first half of the year, up 62.57%. The first half of the United States HVAC business revenue 76.408 billion yuan, up 19.33%.
While revenue growth, but the gross profit margin of the air conditioning business of the two companies have declined. Geli air conditioning gross profit margin of 29.79%, a decline of 2.26 percentage points; U.S. air conditioning business gross profit margin of 20.85%, a decline of 3.35 percentage points, Gree ahead of the U.S. nearly 9 percentage points.