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Gree Electric (000651) dynamic comment: the improvement of the shareholding conversion and improvement of the governance structure

Gree Electric (000651) dynamic comment: the improvement of the shareholding conversion and improvement of the governance structure

[Event]On April 1, the company announced that it had received a notice from its shareholders, Gree Group, that Gree Group was planning to transfer part of its equity in Gree Electric, which may involve changes in the company’s control.

On April 9, the company announced that the shareholders’ shares of Gree Group intends to negotiate and transfer the 15% equity of Gree Electric’s total share capital held by the public solicitation of the transferee.(Annual) The calculation method of the daily highest average price for the 30 trading days before April 9th of the year. The final transfer price shall be the result of public solicitation and approval by the domestic asset supervision and management department.

[Comment]This equity transfer involves the expansion of the amount of scale, and it is expected that multiple investors may take longer.

According to the announcement, the price of this equity transfer will not be lower than the arithmetic scale of the average daily average price for the 30 trading days before April 9 (the estimated consideration is about 45.

67 yuan / share), with a 15% equity share, the transfer involved an amount of up to 41.2 billion yuan.

This means that the new capital must have sufficient financial strength to obtain tickets to the main Gree.

Therefore, we believe that although the share transfer is seeking for the transferee through public solicitation, due to the consideration of the current asset transfer prudence and the consideration of the size of the amount, we think that it is relatively higher for multiple investors to take over.

The proportion of state-owned holdings continued to decrease, and the proportion of combined shareholdings continued.

As of 18Q3, Gree’s largest shareholder is Gree Group, and as the controlling shareholder of Gree Electric, it holds the total share capital of Gree 18.

22% equity.

At the beginning of Gree Electric’s listing, Gree Group’s shareholding ratio was 60%, and its shareholding ratio has undergone a rights issue since the 1990s. The split share structure reform (mainly the binding of dealers’ interests and the grant of equity incentives), and the secondary market reduced its holdingAnd so on gradually decreased by 18.

twenty two%.

The second largest shareholder is Jinghai Guarantee, which is a shareholding platform established by Gree’s core distributors with a shareholding ratio of 8.

91%.

Leaders have the highest shareholding ratio. Among the top ten shareholders, only Dong Mingzhu holds about 0 shares.

74%, the primary overall shareholding ratio is about 1%, mainly in 2007 and 2009 equity incentives.

The nature of the company may change after the stock transfer, and participation in the incentive is worth looking forward to.

Although Gree Group’s controlling stake in the company continues to decrease, Gree Electric Appliances is still replacing the state-owned enterprise system in terms of business management.

If the stock transfer is successfully completed, the shares held by Gree Group will be further reduced to 3.

22%, the nature of Gree Electric’s original state-owned assets may change.

However, in the long run, the possibility of third-party war investment participating in mixed reforms is expected to inject vitality into the company’s management and operation, which 北京夜生活网 is conducive to stable cross-linking and the improvement of the participation incentive system.

Historically, the company’s incentive system has concentrated on non-specific aspects, such as the construction of talent apartments, salary increases, and other incentives for employees. In terms of participation in incentives, only two incentives have been allocated, and they have been reduced proportionally.Limited, compared with the Midea Group, Qingdao Haier and other companies in the same industry that have formed an expanded and improved organizational structure and incentive system, Gree Electric has improved its participation in incentives and management systems.

We believe that if the equity transfer can be successfully completed, the company’s targeted leaders will adopt appropriate and flexible incentive strategies, which will facilitate the deep binding of the interests of participation and the interests of the company, and also promote the enhancement of the right to speak, driving the company.The governance structure was further optimized.

[Investment suggestion]We believe that the transfer of actual control of the company ‘s emerging controlling shareholders is expected to inject new vitality into the company. The hidden dangers of market constraints on the company ‘s past governance structure will also be greatly reduced. Compared with the same industry and overseas appliance leaders, the company ‘s estimatesIt is still relatively low and is expected to open an estimated upward channel in the future.

The company’s 18/19/20 revenue is expected to reach 2001.

28/2223.

71/2466.

4.4 billion, net profit attributable to mother 267.

41/305.

42/338.

2.2 billion yuan, EPS4.

45/5.

08/5.

62 yuan, corresponding to PE11.

68/10.

23/9.

24 times, maintaining the “overweight” level.

[Risk reminder]There is uncertainty in equity transfer; raw material prices have risen; product demand has fallen short of expectations.