First, the status quo of Gree: Gree's valuation is the lowest among the three white electricity, and a single air-conditioning model cannot enjoy a higher valuation. When the growth rate of air-conditioning scale in the market is declining or negative, its anti-risk ability is relatively weak. After Gaoling entered Gree with 40 billion yuan, it originally hoped to help Gree in the international market and other fields of white electricity. Unfortunately, Sister Dong is too persistent. Knowing the reality in the first half of this year, Gree's overseas market continued to be sluggish, and the gross profit margin was only 10%. Other ice, washing and small household appliances can be ignored. The financial report data lags behind, and the investment institutions with expectations for Gree chose to vote with their feet.
Second, institutions have abandoned Gree, and retail investors have taken over crazily. Is it because institutions don't understand investment? Or are retail investors the ultimate winners? In the development of enterprises, the most feared thing is that there is no place to spend money, which means that they don't know what to invest, so they can only buy it back with dividends. Buffett has a lot of cash in his company account. What he said is that there are no enterprises with good quality and low price to invest, while Gree does not engage in overseas markets and other businesses. Give up treatment, if the performance continues to decline, dividends will follow, and the final investment income will return to the company's return on performance growth.
Gree's valuation is low, but static. If the company's performance cannot be broken, the lower the valuation, the higher the valuation. At present, there will definitely be a fracture in the future, and the valuation will definitely be discounted. At present, pe about 10 times is not the lowest, and the lowest valuation is more than 6 times.