Gree Electric (000651) released a comment: mixed reform is about to land, it is estimated that the center can be upgraded

Gree Electric (000651) released a comment: mixed reform is about to land, it is estimated that the center can be upgraded

Zhuhai Mingjun led by Gao Feng Capital became the final transferee of Gree’s 15% stake in Gree. On the evening of October 28, 2019, Gree Electric announced that the final transferee of the 15% stake in the company to be transferred by Gree Group’s proposed agreement was瓴 Capital-led Zhuhai Mingjun must sign the Distribution Agreement with Gree Group within 10 working days.

In order to maintain the stability of consensus, Zhuhai Mingjun has submitted an invitation to cooperate with Gree Electric Appliances. If the invitation is accepted, the two parties must disclose the specific cooperation plan before the signing of the “Share Transfer Agreement”.

Reviewing the history of mixed reforms, after seven months of landing, Gree Electric announced for the first time on April 1, 2019 that Gree Group, the controlling shareholder, is planning to transfer part of the shares held by Gree Electric; on April 9, it announced that it intends to transfer the share capital9.

0 billion shares (accounting for 15 total shares).

0%) and the transfer price is not less than 45.

67 yuan / share (after ex-rights ex-dividend adjustment to 44.

17 yuan / share); announced on August 12 that Zhuhai SASAC agreed with Gree Electric on the routine distribution project of publicly soliciting the transferee plan, the provisions of the intent method and law, and in promoting the company’s development, implementing stability, improving governance structure, etc.On September 3, the company announced that the intention of the transferee was Zhuhai Mingjun and Houpo, who were involved in Gao’an, respectively.

On the evening of October 28, it was announced that Zhuhai Mingjun triggered by Gao Yong became the final transferee, marking that after 7 months of mixed reforms, Gree Electric could replace traditional holdings and convert it into a shareholder property diversified equity structure.

Gaofeng Capital’s investment performance in various fields is outstanding, and Zhuhai Mingjun, which has achieved good synergy, has achieved outstanding investment performance in consumption, advanced manufacturing and other fields. It has a better strategic resource reserve and is expected to help Gree Electric in the new 杭州桑拿 stage.Development is leading forward.

Considering Zhuhai Mingjun’s invitation to cooperate with Gree Electric, we expect that the existing ones will maintain stability and maintain a high degree of autonomy in the scale of operations. Measures such as binding the company’s and stakeholder’s equity incentives are also expected to casually cooperate with the plan (or(Follow-up) to further optimize the corporate governance structure.

Investment suggestion As a leader in the air-conditioning industry, the company has significant competitive advantages in terms of production, products, channels, brands and other multi-dimensional means.

As mixed reforms are about to land, based on the demands of the transferee and the leader, the company’s future governance structure will be optimized, the expected average dividends will be 厦门夜网 stabilized, and the long-term suppression of expected factors will help eliminate them.

We expect net profit attributable to mothers to be 283 in 2019-2021.

3, 317.



The latest closing price corresponds to a PE of 10 in 2020.

8 times, revenue injection, overlapping and mixed reforms will soon be implemented, which will effectively drive the estimation of the hub. Based on this, we give Gree Electric a corresponding 2020 PE.

0x, increase the reasonable value to 73.

80 yuan / share, maintain “Buy” rating.

Risk warning: termination of controlling shareholder’s equity transfer; expansion of land sales scale; continued decline in domestic consumption power; changes in raw material prices; exchange rate changes.