On the evening of October 26, Gree Electric (000651) disclosed its third quarterly report for 2021. The company achieved operating income of 138.135 billion yuan in the first three quarters, a year-on-year increase of 9.73%, and realized a net profit of 15.645 billion yuan, a year-on-year increase of 14.21%. Among them, the third quarter achieved revenue of 47.083 billion yuan, a year-on-year decrease of 16.50%; net profit of 6.188 billion yuan, a year-on-year decrease of 15.66%.
Looking at it in a single quarter,GreeIn the first three quarters of this year, electrical appliances achieved net profits of 3.443 billion yuan, 6.014 billion yuan and 6.188 billion yuan respectively, of which the third quarter increased slightly by about 3% compared with the second quarter. Judging from the 2018 and 2019 performance before the epidemic, Gree Electric’s single-quarter performance often occurred in the third quarter.
According to the third quarterly report, the company’s net cash flow from operating activities in the first three quarters was 6.462 billion yuan, compared with 3.032 billion yuan in the same period last year, an increase of 113.12% year-on-year, mainly due to the increase in cash received from sales of goods and provision of labor services in the current period .
However, in the inventory column, Gree Electric’s inventory as of the end of the third quarter of this year is as high as 39.675 billion yuan. This figure is still 27.880 billion yuan at the end of 2020, which means that the company has increased by about 11.1 billion yuan in the first three quarters of this year. Inventory amount.
From the perspective of gross profit margin, Gree Electric’s gross profit margin for sales in the first three quarters was 24.13%, which has not changed much from the first two quarters of this year.
Everbright Securities recently released a research report that pointed out that 2021 is a “frustrated year” for the home appliance sector. As of the end of September 2021, the home appliance sector had fallen by 24.2% during the year, ranking last in Shenwan’s first-tier industry, the worst year since 2005. Among them, Gree Electric’s stock price has fallen by more than 33% year-to-date.
Everbright Securities believes that there are four reasons for the poor performance of the home appliance industry: First, upstream inflation, rising raw material prices have caused concerns about declining profit margins. The increase in the cost of white electricity in the first half of this year exceeded the price increase cycle in the first half of 2017. The second is downstream “deflation”. The epidemic has repeatedly impacted the growth of residents’ income and the demand for home appliances. The third is that exports have entered a high base. From the second half of 2020 to the first half of 2021, the prosperity of white goods export is at a high level in the past five years, and the market has entered a 1-year high base cycle. Fourth, the style is biased towards emerging industries and upstream cycles.
Liu Buchen, a senior observer of the home appliance industry, said in an interview with a reporter from the Securities Times·e Company that some investors had high expectations for Gree Electric’s third quarterly report, but the actual situation was not ideal. “Chinaair conditionerSo far, it has entered the era of stock competition, and the market increment is low. It is already very difficult for companies to achieve growth. Coupled with the downturn in the real estate industry this year, it will also bring a drag on the air-conditioning industry. Looking at this year, the performance of companies with air-conditioning as the main industry will not be too good. “
The National Bureau of Statistics announced September’s social zero data, household appliances and audio equipment category was 73.94 billion yuan, an increase of 6.6% year-on-year (an increase of 1.29% from September 2019), and the growth rate increased by 11.6pct month-on-month; according to data from Aowei Cloud Network, In September, offline and online retail sales of major domestic appliances in China performed better than in August. In terms of average prices, in September 2021, offline and online major major appliances increased by different rates year-on-year.
The Beijing Capital Securities Research Report believes that overall, the retail sales of home appliances in September showed a marginal trend. It is expected that the recovery in the fourth quarter will drive consumer demand for home appliances. The penetration rate will increase and the frequency of new product launches is expected to continue to rise. Growth, traditional major appliances categories are expected to achieve steady growth with the help of channel optimization.