Emile Farsoun

Equity Bottom-Up

Haier Electronics Group Co / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/haier-electronics-group-co" target="_blank" data-smartkarma-citation="entities:4877:1" rel="noopener">Haier Electronics Group Co (1169 HK)</a> offers a compelling growth story driven by market share gains and premiumization for its Washing Machine and Water Heater products, as the industry consolidates further and Haier dominates with its premium Casarte brand.Haier is expected to grow earnings by 12% CAGR over the next three years to over RMB 2 per share, driven by 8% revenue growth and EBIT margin expansion by c. 50 bps to 6.7%.   The stock is trading at 2020 P/E of 12.2x, a discount to fair multiple of 14x.  We expect the stock to deliver an IRR of c. 17% over the next three years driven by earnings growth, dividend yield and a re-rating to 14x.

Haier Electronics Group Co (1169 HK) offers a compelling growth story driven by market share gains and premiumization for its Washing Machine and Water Heater products, as the industry consolidates further and Haier dominates with its premium Casarte brand.Haier is expected to grow earnings by 12% CAGR over the next three years to over RMB 2 per share, driven by 8% revenue growth and EBIT margin expansion by c. 50 bps to 6.7%.   The stock is trading at 2020 P/E of 12.2x, a discount to fair multiple of 14x.  We expect the stock to deliver an IRR of c. 17% over the next three years driven by earnings growth, dividend yield and a re-rating to 14x.

Haier Electronics (1169 HK): Attractive Growth Story at a Discounted Valuation