Equity Analyst

Steve Zhou, CFA

Over 13 years of professional experience covering mainly Asian consumer companies in sell-side and buy-side.

Equity Bottom-Up

Gree Electric Appliances / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gree-electric-appliances-inc-of-zhuhai" target="_blank" data-smartkarma-citation="entities:7622:1" rel="noopener">Gree Electric Appliances (000651 CH)</a> trades at the lowest valuation multiple among the three major home appliance companies in China, at 7x forward PE and 7% forward yield.</li>
<li>Investment case rests on stable earnings growth and high dividend payout and yield, which works well in a low interest rate environment in China.</li>
<li>Resiliency of earnings for Gree is under-appreciated by the market, making rerating possible. </li>
</ul>



Gree Electric Appliances (000651 CH) trades at the lowest valuation multiple among the three major home appliance companies in China, at 7x forward PE and 7% forward yield.
Investment case rests on stable earnings growth and high dividend payout and yield, which works well in a low interest rate environment in China.
Resiliency of earnings for Gree is under-appreciated by the market, making rerating possible. 


Gree (000651 CH):  Resilient Fundamentals; Rerating Potential In A Low Interest Rate Environment