Gree Electric Appliances (000651) Earnings Surge: FY Net Income Sees 10.2% to 19.6% Increase

Gree Electric Appliances on Smartkarma

Steve Zhou, CFA, an independent analyst on Smartkarma, recently published a research report on Gree Electric Appliances (000651 CH). The report highlighted the company’s resilient fundamentals and potential for rerating in a low interest rate environment in China. Zhou noted that Gree Electric Appliances trades at a low valuation multiple of 7x forward PE and 7% forward yield, and that its investment case rests on stable earnings growth and high dividend payout and yield.

Zhou added that the resiliency of earnings for Gree is under-appreciated by the market, making rerating possible. He concluded that in a low interest rate environment, Gree Electric Appliances is a good investment opportunity with potential for strong returns.

A look at Gree Electric Appliances Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Gree Electric Appliances, Inc. of Zhuhai is in a strong position for the long-term. The company has a high score of 4 for Value, 5 for Dividend, and 5 for Resilience, indicating a consistent and secure outlook. Gree manufactures and sells a series of air conditioners, ranging from window type to ceiling type, as well as air purifiers. With such a strong lineup, Gree is well-positioned for success in the long-term.

Gree Electric Appliances, Inc. of Zhuhai has a score of 4 for Growth, suggesting that the company will continue to grow at a steady rate. This growth is likely to be sustained by the wide range of air conditioners and air purifiers that the company offers. Additionally, the score of 3 for Momentum indicates that Gree is likely to maintain its current momentum, ensuring a strong long-term outlook.

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