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Gree Electric (000651) 2019 First Quarterly Report Review: Performance Growth Returns to Industry Level Sales Strategy May Be Proactive

Gree Electric (000651) 2019 First Quarterly Report Review: Performance Growth Returns to Industry Level Sales Strategy May Be Proactive

Event: The company released the 2019 first 杭州桑拿 quarter report on the evening of April 29, and the first quarter of 2019 reported a total operating income of 405.

48ppm, an increase of 2 per year.

49%; net profit attributable to mother 56.

7.2 billion, an annual increase of 1.

62%; non-net profit attributable to mothers is increasing by 22.
.

16%, net operating cash flow decreases by -46 per year.

15%.

Opinion: The growth rate of the company’s performance has returned to the industry level, and the industry inventory has fallen.

In the first quarter of 2019, the company’s reported revenue and net profit attributable to mother increased by 2 respectively.

49% and 1.

62%.

The growth rate of performance growth broke through and was close to the trend of the industry. Industry online data shows that in the first quarter of 2019, the total conversion volume of domestic air conditioners in China was 40.27 million units, of which the domestic sales replacement volume was 21.8 million units, each time 2.

6%, exports 18.47 million units at the first level, and -1 at the first level.

4%, it is estimated that the concentration of orders for exports to North America has moved forward, resulting in slightly weaker demand for exports in 2019, resulting in 1.

A slight decrease of 1%.

Industry online data shows that the growth rate of retail sales of home air-conditioning terminals in the first quarter of 2019 was close to 4%, compared with 2.

The increase of 6% indicates that terminal demand is now showing a weak recovery.

According to the inventory data monitored by the industry online, until the end of March, the entire inventory of household air conditioners had fallen to less than 48 million units, including industrial and channel inventory, and the historical high in February had fallen somewhat.

The deduction of non-net profit increased rapidly, and the amount of non-recurring gains and losses fell sharply.

Non-recurring profit or loss attributable to shareholders of listed companies increased by 22.

16%, and the net profit attributable to shareholders of listed companies has increased by only 1 per year.

62%, mainly due to investment income. Fair value gains and losses have actually decreased. Fair value changes and investment gains and losses under trading financial assets and debt items in Q1 2019 have decreased compared to the same period last year.

8.2 billion.

Net operating cash flow decreased and accounts receivable grew rapidly.

The cash paid for other operating activities in Q1 2019 was 112.

94 trillion, an increase of 314 over the same period in the first quarter of 2018.

68% of the company’s 2018 annual report disclosed in the “payment of other cash related to operating activities” cash paid for sales expenses, management expenses and cash paid for research and development expenses, return the advancement of the project, of which cash paid for sales expenses accounted forThe largest ratio (accounting for more than 80%), management and research and development expenses in the first quarter of 2019 increased at least less than 12%, the scale of construction in progress is about 200 million and the growth rate does not exceed 20%, so it can be roughly judged thatThe company’s cash paid for selling expenses in the first quarter increased previously, and the company’s sales rebates to dealers may increase significantly in the first quarter.

In the first quarter of 2019, the company’s sales of goods and provision of labor services received an annual increase of 28 in cash.

88%, but accounts receivable increased by 44 in ten years.

69%, accounts receivable increased by 34 in the first quarter.

US $ 4.1 billion, the company’s sales strategy may be biased towards routine initiative.

Judging from the high production and radical progress of Midea and Oaks in the same industry, meanwhile, the average domestic retail price of air conditioners in February this year decreased by more than 10 units from the same period of the previous year, and the company’s possibility of increasing rebates to dealers.

Investment advice: Maintain the recommended 南京夜网 level.

The company’s industry leader is solid overall, and the progress of diversification is beginning to show. Although the growth rate of performance has fallen back, but considering the industry inventory, real estate sales are picking up, the long-term growth trend of the industry has not changed, and the company’s scale is not high. In summary, we maintain the recommended level.

The company’s EPS is expected to be 4 in 2019-2020.

92 yuan, 5.

57 yuan, corresponding to PE is 11 times, 10 times.
Risk warning: intensified competition in the industry triggers price wars, exchange rate changes, and changes in raw material prices.