Gree Electric (000651): Equity Transfer Whispering, Gao Yan’s Participation in Cooperation Prospects Can Be Expected

Gree Electric (000651): Equity Transfer Whispering, Gao Yan’s Participation in Cooperation Prospects Can Be Expected

Event description Gree Electric announced today that shareholders Gree Group proposed to transfer 15% of the company’s equity in the transferee. Zhuhai Mingjun is the final transferee, and it will sign the Equity Transfer Agreement with Gree Group within 10 working days.”; Budget Zhuhai Mingjun has initiated an invitation to cooperate with Gree Electric Appliances. If the invitation is accepted, both parties need to disclose the specific cooperation plan before the signing of the“ share transfer agreement ”.

Incident Review Zhuhai Mingjun backed by Gao Yong, Gree hybrid reform is coming soon: Zhuhai Mingjun allocated equity investment company for Gao Dai capital, converted to its final win to become the assignee of Gree Electric Appliances 15% distribution, which means Gree hybrid reformThe matter is imminent, and Gao Yong replaced Gree Group as the company’s new controlling shareholder.

Gaojing Capital has rich investment experience in household appliances and other consumer fields, and has achieved fruitful results. It has been among the top ten shareholders of Gree Electric for a long time. According to the public and open solicitation plan, Gaojing has gradually improved Gree’s operating quality and maintained the company’s long-term healthy development.Achievements play a positive role.

Leader cooperation prospects are expected, and the fundamentals are still determined: According to the requirements of the public solicitation plan, the assignee needs to propose related plans to maintain the stability of the carrier and cooperate with the joint party. Based on this, we judge that after the assignment and transfer is completed, Gree’s existing management teamThe high probability will remain stable, and have full autonomy in the main business operation and management scale, and the fundamental certainty of the company remains.

In addition, considering the shareholding ratio of Gree executives and the related incentive system, there are differences in the existing differences. It is worth looking forward to further binding with the company on equity distribution and enjoying a more market-oriented incentive policy.

The stable dividend expectation is strengthened, and it is estimated that the center is expected to achieve: the market has always exceeded the scale of Gree’s governance structure far beyond the main business operation itself, transforming the company’s transformation to form a certain suppression; meanwhile, the mixed reform matters have settled and the governance structure has been optimized and advancedDrive the reconstruction of the company’s evaluation system.

In addition, taking into account the company’s abundant monetary capital reserves, the main business capital expenditure requirements and the strategic investors ‘and institutional shareholders’ expectations for maximizing stable dividend returns, we expect that the company’s subsequent dividend ratio will likely recover and stabilize at a high level.High index support companies are more certain to evaluate the promotion of the hub.

15 times Gree is not far away and maintains a “buy” rating: Gree Electric has formed a deep moat based on the deep integration of the industrial chain and the construction of its own channel system, and its past business performance is regarded as the industry leader; and this mixed reformThe initial implementation of the event, the optimization of the corporate governance structure, the consolidation of the combined equity binding and the stable dividend expectations are expected to continue to strengthen, and it is expected to drive the estimated hub to increase, 15 times the Gree is not far away; in summary, we expect the company’s EPS in 2019 and 2020 to be 4.

83 and 5.

34 yuan, corresponding to the current sustainable 11 respectively.

79 and 10.

66 times, maintain “Buy” rating.

Risk reminders:苏州桑拿网 1. The mixed reforms are not progressing as expected; 2. The dividend ratio is not as expected.