Gree Electric, a company that investors once loved and hated, has been a happy event recently. After the release of the performance forecast in the early morning, the stock price suffered a rare **, and the market value evaporated by more than 10 billion yuan in a single day. However, this did not stop Gree Electric's ambitions in the capital market.
First, let's take a look at this earnings announcement. Gree Electric expects net profit to reach 27 billion yuan to 29.3 billion yuan in 2023, a year-on-year increase of 102% to 196%。At the same time, the company's total operating income is also expected to reach 205 billion yuan to 210 billion yuan. These figures have exceeded market expectations, showing the strong strength of Gree Electric in business expansion and profitability.
However, what is more concerning is Gree Electric's plan to increase its holdings in its holding subsidiary Gree Titanium. Gree Electric plans to take the opportunity to carry out the transfer of the company's agreement in the next 12 months2753% of Greti's shares. This means that Gree Electric plans to receive Gree Titanium in its entirety. From the perspective of the transfer, Gree Titanium is valued at about 4.1 billion yuan, which is nearly 70% lower than the valuation of 13 billion yuan at the peak in 2016.
Although Gree Titanium's performance is currently in a large loss, Gree Electric is obviously confident in its future development. Chairman and President Dong Mingzhu said at this year's shareholders' meeting that Yinlong's former major shareholder "dug too big a pit". However, she did not give up, but invested in Yinlong New Energy in her personal name, and gradually promoted Gree Electric to complete its holdings.
The market's reaction to the acquisition was not encouraging. Many investors believe that this acquisition is too high, and Greti's performance has been poor. As a result, many investors chose to sell**, resulting in the share price of Gree Electric**.
However, for me personally, I'm not worried about this issue. First of all, the price-earnings ratio of Gree Electric is only more than 6 times, with a market value of 173.4 billion, an annual income of more than 27 billion, and an annual net operating cash flow of more than 30 billion. Looking at the entire capital market, there are only a handful of such high-quality enterprises. Secondly, the performance of Gree Electric has been very stable, and the expectations are very good. Even in the current environment, Gree's performance is still stable and rising. Finally, Gree's dividend policy is also attractive. According to the median net profit of 28 billion yuan, the dividend is 3 yuan and 5.6 billion shares, as long as 16.8 billion yuan is divided. For my personal investment style, I like the feeling of security that the performance is at a record high and the stock price is at a record low.
In general, although the stock price of Gree Electric has suffered recently, it does not mean that the company's prospects are bleak. Rather, I see it as a short-term reaction to market sentiment. For investors, it is more important to look at the long-term development and profitability of the company. I believe that as long as Gree Electric can continue to maintain its solid performance and good dividend policy, its stock price will eventually return to a reasonable level. Let's wait and see!