Midea's rejuvenation of tens of billions of repurchases, the market value is still less than 300 billion yuan, the executives shouted that the cold winter is coming.

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Midea's rejuvenation of tens of billions of repurchases, the market value is still less than 300 billion yuan, the executives shouted that the cold winter is coming.

2022-05-14 18:12:11 5 ℃

Article/ "Finance and Economics" Weekly author Liu Dongxue

Edit/ Chen Fang

Several empty mountains are overwhelming. From the beginning of the year, Midea Group's stock price has fallen by more than 20%. On May 13th, the stock price closed at 57.01 yuan, and the total market value hovered around 400 billion yuan. Compared with the total market value of Yuan, it has evaporated more than 300 billion yuan.

Recent The media brought a wave of public opinion crisis to the media.

Midea shareholders are most concerned about the judgment of Midea Group executives on the situation in the next three years and believes that it will be an unprecedented cold winter. The situation is more difficult than before. Essence

Winter, difficulty, and profit -these words have provoked the sensitive nerves of 430,000 US dollars. They have discussed on the investment platform. Why do beauty feel that the next three years will be cold winter? Why emphasize the restoration of profit? You must know that the transcript of 2021 announced recently is not bad.

According to the financial report, Midea Group exceeded the 300 billion yuan mark for the first time in 2021, reaching 34.1233 billion yuan, an increase of 20.06%year -on -year; net profit was 29.015 billion yuan, an increase of 5.49%year -on -year, which was far ahead of the three home appliance giants. Specifically, it has a revenue of nearly 120 billion yuan more than Haierzh's revenue, and its net profit is more than twice that of Haier Zhi's family; revenue has about 150 billion yuan in revenue, and net profit exceeds more than 5 billion yuan.

On May 13th, at the 2021 online performance briefing meeting, investors' management of the management of the United States on the basis of the industry's cold winter judgment was questioned. Many economic cycles fluctuate, "Prophet of Chunjiang Water Warm Duck", the company's operating mechanism has enabled the management to have a lot of predictions on the future, and it can soon make corresponding adjustments and responses.

There is a reason for Midea's caution in the future. Fang Hongbo said that in the current era, various uncertainty and urgency sexual interlocking together and become a new normal. In 2021, the new crown epidemic continues to repeat globally, and the political and economic environment at home and abroad is also more intricate, and various costs such as commodities, shipping logistics, and energy supply have been greatly improved.

At present, Midea does face a lot of challenges. The financial report data shows that the growth rate of net profit has fallen sharply to the growth rate of revenue. In 2021, it fell from double -digit growth to individual digits, and the gross profit margin failed to return to the level of 2019.

In the capital market, Midea Group is also abandoned by funds and small and medium investors. On May 13th, Midea's permits permitted 57.01 yuan per share, which has shrunk by 22.76%since the beginning of the year, and the decline in the first three home appliances giants. In just over a year, the total market value of Midea Group has evaporated by 341.7 billion yuan compared with the peak period last year, which is equivalent to shrinking 1.4 Heier Zhijia, 1.7 Gree Electric, with a total market value of only 398.9 billion yuan.

In the face of the status quo, Midea Group did not think of a way. Within a year, it spent tens of billions of yuan for stock repurchase, but still failed to reverse the decline of the stock price.

Over 10 billion yuan a year

Midea Group's stock repurchase this year began a paper announcement in March. According to the plan, Midea's plan to pay 2.5 billion yuan to 5 billion yuan for repurchase, the upper limit of the repurchase price was 70 yuan/share.

On May 6, Midea Group issued an announcement to disclose the detailed progress of this repurchase. This is the third time the repurchase progress has been announced since March. As of the end of April this year, Midea Group passed the special account of repurchase to concentrate in concentration to concentrate The bidding method has repurchased 11.102 million shares, accounting for 0.1587%of its total share capital. Among them, most of them were bought in March, and the entire March was repurchased by 10.154 million shares. The stocks repurchased in April were 947,000 shares.

Midea repurchase has a maximum transaction price of 59 yuan/share, a minimum transaction price of 54.4 yuan/share, and the average repurchase price per share is 57.1 yuan, which is slightly higher than the closing price of 57.01 yuan per share on May 13th. It was 634 million yuan. This means that Midea has completed a quarter of the lower limit of the repurchase plan.

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For investors in Midea Group, repurchase is a rare thing. Since 2018, Midea has repurchased company shares for 5 consecutive years. Midea Group said to the "Finance World" weekly that Midea has paid more than 23.5 billion yuan in stock repurchase in the past 5 years.

Among them, the payment amount was the highest in 2021. This year, Midea Group launched two repurchase plans for repurchase.

The first time was February after the Spring Festival in 2021. This is the best time for Midea Group to perform the best time since listing, which once exceeded 100 yuan/share. The fierce rise gave the company a great confidence. At that time, the upper limit of the repurchase stock price given by Midea Group was 140 yuan/share. In less than two months, as of April 2, 2021, Midea's cumulative repurchase shares reached a maximum limit of 100 million shares, and the total amount paid was 8.66 billion yuan.

Then on May 10, 2021, Midea Group's second share repurchase plan was announced in 2021. However, due to Midea's stock price continued to decline, the stock price of the repurchase of the stock price was reduced to 100 yuan/share, and finally the highest transaction price was 79.15 yuan/share, and the minimum transaction price was 61.43 yuan/share. Essence In the whole year of 2021, Midea Group paid a total of 13.66 billion yuan for the share repurchase. Although this year spent tens of billions of yuan, Midea Group's annual stock price trend was declining. The overall stock price shrank by 23.5%, and the closing price per share at the end of the year was 73.81 yuan.

The least funds were spent in 2020. The Group only repurchased 41.826 million shares in this year, spent 2.7 billion yuan, and a total repurchase plan of 5.07 billion yuan was finally soaked. It only completed more than half. It is far more than the upper limit of the repurchase price of 63.41 yuan/share. This year is one of the best years of Midea's stock price. The annual stock price increased by 73.58%, rising from 55.97 yuan at the beginning of the year to 96.47 yuan at the end of the year.

In 2018, the Midea Group repurchase began, the worst year of its stock price. The stock price shrinks by 32.02%throughout the year, and the stock price at the end of the year once touched a new low of 31.69 yuan. In less than half a year of this year, Midea repurchased 95.105 million shares, with a total payment of about 4 billion yuan, reaching the highest limit, and the repurchase plan was completed in advance. In the next 2019, Midea Group repurchased 62.181 million shares and paid 3.2 billion yuan.

Calculated, from 2018 to 2021, Midea Group repurchased about 3710.88 million shares, with an average repurchase price of 63.49 yuan/share. If the stock price of 57.01 yuan/share on May 13th on May 13, Midea has floated at a share repurchase of 2.4 billion yuan in these 4 years.

In response to the actions of the annual repurchase shares, Midea said to the "Finance and Economics" weekly magazines that most of the repurchase in recent years has been used for equity incentives. Midea Group has launched equity incentives for 9 consecutive years. The repurchase shares as the source of equity incentive shares can reduce the number of shares to issue shares and further reduce the dilute of the income per share.

As for the future of Midea Group, will it still repurchase? The other party only responded that the company's current repurchase account stocks are more abundant.

Investor running

Buying is a common method for listed companies. There are several aspects of the core purpose, such as adjusting the structure of the share capital, boosting market confidence, and stabilizing the company's stock price.

Founder of Nail Technology told "Finance and Economics" Weekly that Midea's repurchase uses share incentive means to maintain the stability of management and R & D teams. It is only one of the goals, and it is to enhance the confidence of investors. I hope to repurchase through the repurchase Measures show that the company's long -term value is optimistic, thereby boosting the company's stock price.

In 2018, the start of Midea's stock repurchase is indeed the worst year of its stock price, and the decline has reached a record high. This year's revenue of Midea also faces a huge challenge. Revenue from 51.35%in 2017 quickly fell to a rapid growth of high -speed growth to fell quickly to fell to the high -speed growth to fell to the rapid growth of high -speed growth to fell quickly to fell to the rapid growth of the high -speed growth of 2017 to the rapid falling to the rapid growth of the high -speed growth of 51.35%. The number of digits increased by only 7.87%year -on -year to 259.665 billion yuan. After that, the revenue of Midea in 2019 and 2020 did not significantly improve, and the growth rate still had only one digit, which were 7.14%and 2.16%, respectively.

In the context of not obvious improvement in performance, the stock price of Midea Group rose sharply for two consecutive years. In 2019, it rose 62.29%, and it rose 73.58%again in 2020. This is difficult to say that it is not a role in repurchase.

Gong Qing, a small shareholder of Midea, caught up with good times. He started to build a warehouse at 52 yuan/share at the beginning of 2020. Later, the global epidemic spread and the stock market plummeted. The stock price of the Group fell below 50 yuan/share, so Gong Qing quickly replenished the position. At that time, the Midea Group accounted for about 35%of his total position.

For Gong Qing, the next story is beautiful. He told the "Finance and Economics" weekly, "Under the multiple favorable stimuli, Midea's stock price stopped rising, and in just one year, it rose from more than 50 yuan to 105 yuan, which achieved doubled."

During that time, not only Gong Qing, it was a spring breeze for many other shareholders of the group. Even in a certain stock forum, investors predict that Midea's stock price will inevitably exceed 150 yuan/share, which has been approved by a lot of investors.

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However, happy time is always short. Midea Group's stock price began to "dyke" before breaking through 100 yuan in early 2021, and many investors were caught off guard.

In order to stabilize the market confidence, not only the Midea Group has increased the repurchase, but the actual controller He Xiangjian also joined the repurchase queue. From June 3 to September 22, 2021, it increased its holding of the United States by centralized bidding trading system 1431.3. Thousands of shares cost 1.05 billion yuan, accounting for 0.21%of the company's total share capital. After this increase, He Xiangjian's holding of Midea's shareholding accounted for 0.46%of the company's total share capital.

It is a pity that these measures have no longer able to boost the stock price of Mei Group. At the end of 2021, Midea Group's closing price was 73.81 yuan/share, which was 30 % of the highest level of 105.84 yuan/share in February that year.

In 2022, Gong Qing believed that it was time to return to the upward trend if he had adjusted the whole year of beauty. But I did n’t think about it. This year, a few black swans were encountered, Russia -Ukano's conflict, domestic new house sales fell sharply, A -share disaster ... Several empty mountains were overwhelming. More than 20%, the stock price has fallen back to 57.01 yuan on May 13, and the total market value hovers around 400 billion yuan. Compared with the total market value of over 700 billion yuan last year, it has evaporated more than 300 billion yuan.

The world is good, all of which are beneficial; the world is full of benefits, and investors who have been attracted by the great situation have been scattered. According to the Flush iFind data, as of March 31, 2022, only 506 of the top ten heavy stocks holding Midea groups with only 506 funds decreased by 97 from the previous quarter; Yuan, a decrease of 15.31%month -on -month.

Small and medium investors have to bear the pain cut. According to the Midea Group announcement, the total number of ordinary shareholders of Midea Group was 520,500 in the first half of 2021. As of the first quarter of this year, the total number of ordinary shareholders of the United States was 438,200, which means that, in the shortest, short In 9 months, Midea Group lost 82,300 SMEs.

"In two years, I didn't do anything, but I couldn't sit still. I watched Midea doubled and fell back to the origin." Gong Qing said helplessly.

Expectation of overdrawn

Gong Qing believes that the stock price of Midea rose too much and too fast, and it was unusual itself.

"Midea's price -earnings ratio rose to 25. In fact, the net profit of Midea in 2021 did not increase too significantly, which means that the company's stock price was overdrawn before." Gong Qing analyzed.

In addition, 2020 is the big bull market of the fund newspaper. Midea's stock price has risen, and the funds that swarmed to the funds are indispensable. According to data from Anxin Securities Research Center, in the first quarter of 2020, only 332 funds held Midea Group stocks, holding a market value of 12.4 billion. However, after this, the fund was madly added. By the end of the fourth quarter of 2020, a total of 677 funds held Midea Group stocks, which were more than twice the first quarter of the same year; 4.4 times.

"Last year, various funds were disintegrated. As one of the companies that were held in the group, Midea could not escape the plunge." Gong Qing said.

After the market value is cut, the market's expectations for beauty are even more conservative.

From the 2021 annual report announced by the Midea Group, it can be seen that last year, the scale of Midea's revenue exceeded the 300 billion yuan mark for the first time, reaching 341.233 billion yuan, an increase of 20.06%year -on -year, and the net profit attributable to shareholders of listed companies was 28.574 billion yuan. In the first quarter of this year, Midea's revenue and net profit increased by 9.55%and 10.97%year -on -year, respectively.

Such results are the best among the three home appliance giants. Haier Zhijia's 2021 financial report showed that the company achieved total operating income of 227.56 billion in 2021, an increase of 8.5%year -on -year; the net profit attributable to mother was 13.07 billion, a year -on -year increase of 47.1%. Gree Electric achieved 189.654 billion yuan in total operating income in 2021, an increase of 11.2%year -on -year; the net profit attributable to mothers was 23.064 billion yuan, an increase of 4%year -on -year. From the perspective of total revenue, Midea Group has clearly opened the distance of 100 billion yuan.

However, such achievements only made the opening price of the Midea Group on May 5 from the 2021 annual annual announcement announced that it had slightly increased by 1 yuan, and later returned back.

"In the final analysis, what kind of valuation of investors give a company is based on expectations. The home appliance industry has developed to the present, and the growth space has not been large." Liu Buchen, an analyst of the home appliance industry, told the Weekly of Finance and Economics.

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Mr. Ding also believes that investors' expectations for a company are the first choice from the track. "The results shared when leading companies shared when they moved up to the industry, but when the industry downside, the natural pressure is also the largest. "

Actually, it is not just investors. Midea Group management does not seem to have high expectations for the company's future performance. Midea Group's recent 2022 restricted stock incentive plan (draft) shows that the restricted stocks granted by this plan for each annual performance assessment target of each year is 2022 and 2023, respectively. And 2025 not less than 18%. In contrast, Midea Group's weighted average net asset yields in 2021 and 2020 were 24.09%and 24.95%, respectively.

Midea Group is not optimistic about future expectations. It performed more direct when communicating with investors on May 6. Midea executives admit: "The core principle of 2022 is 'reasonable income, restore profitability'. At present There is still a distance to return to the best level in history. "

Midea group executives believe that in the next three years, it may be more severe for the industry, just like a cold winter. "The biggest challenge is uncertainty. Although we have done a lot of plans, many things cannot be controlled. We are full of confidence in the field of control. Overall, the uncertainty of the external environment is unpredictable."

The new business has not been responsible yet

Facing the future, the Midea Group, which is in the Red Sea market, does not want to be trapped in the "home appliances".

Midea Group's positioning of itself is "Global Technology Group", providing diversified products and services, and repeatedly emphasized that it has firmly launched the B -end business transformation, the C -side and B -end business, and the B -end business has become a beautiful exploration. The second growth curve. In order to cooperate with strategic adjustment, Midea Group began to perform a hundred trials of uncomfortable mergers and acquisitions.

In March 2020, Midea acquired 18.73%of Hekangxin Energy for 743 million yuan to obtain a controlling equity; in November of the same year, Midea acquired Foshan Ling Wang Elevator Company into the building of the building of the building; one month later, Midea acquisition was acquired The Hitachi compressor of Thailand is uniformly managed by the group's electromechanical industry. After that, Midea Group was constantly arranged. In 2021, he completed his holding of Wandong Medical, and this year, he completed the privatization of Kuka.

The Tianyancha APP shows that on January 12, Anqing Weiling Auto Components Co., Ltd. was established, which was indirectly held by Guangdong Weiling Automobile Components Co., Ltd. The company holds shares together, holding 95%and 5%of the shares.

Judging from the experience and beauty of related industries, the overall profitability of the To B business will be stronger than the TO C business, but the reality is the value of the market's cognition of the United States.

At the end of 2021, Midea Group re -planned the overall business structure and adjusted from the original four major sectors to the five major business segments.

From the perspective of revenue structure, Midea Group's five major business segments smart home business group, industrial technology business group, building science and technology business department, robot and automation business department and digital innovation business are the most contributing to the intelligent home business group. The intelligent home business group achieved revenue of 234.9 billion yuan last year, an increase of 13%year -on -year; the four major businesses in the back were about 10 billion yuan, which were 201 million yuan, 19.7 billion yuan, 25.3 billion yuan, and 8.3 billion yuan, but the growth rate was increased. Fast, increased by 44%, 55%, 23%, and 51%year -on -year.

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Simply put, the main business of Midea is facing challenges, but the new business has not been able to take on heavy tasks. Industry insiders analyzed that the biggest challenge of Midea Group is that the diversified layout of the B -end has not found the second profit growth curve, and the main eye of the home appliances can be visible to the real estate downturn.

On March 3rd, the China Institute of Electronics Information Industry Development released the "2021 China Home Appliance Market Report" showing that in 2021, my country's home appliance market fully recovered, and the retail scale reached 88.1 billion yuan, a year -on -year increase of 5.7%. The level of 2019. To put it bluntly, compared with 2019, the entire home appliance market has not increased in 2021.

At the same time, home appliance companies must also bear the pressure of rising costs of sea transportation and raw materials. On May 13, Zhong Yan, chief financial officer and chief financial officer of Midea Group, explained that the price of raw materials rising and exchange rate fluctuations caused the company's gross profit margin to decline.

Data show that Midea Group's gross profit margin has declined for two consecutive years, from 30.55%in 2019 to 24.5%in 2021, while Gree Electric's gross profit margin in 2021 is 30.25%. All groups are better than Midea. At the same time, the net profit growth rate of Midea Group in 2021 also reached a new low in nearly 10 years, with only 5.49%.

This is why Gree Electric's revenue is almost half of the Midea Group, but the ability to make money is equivalent to the Midea Group.

In this context, Midea executives will restore profitability to the development target of 2022. Midea executives emphasize that the method of improving profitability is mainly achieved by price increase and adjustment of product structure. This year, it will further increase the sales of high -end brands Colmo and Toshiba brand in China. Overseas requires OBM investment to increase.

General Ding believes that the direction of Midea's business adjustment is right, but the process is required. "If the B -side business wants to generate a large -scale return in beauty, it takes a long time. In the eyes of investors, the new business cannot form a scale of scale in a certain period of time, which may not be optimistic."

Due to the cautious judgment in the future, in recent years, in order to expand the to B business, it has continuously acquired the beauty of mergers and began to take the initiative to slow down investment. On May 13, Fang Hongbo answered the investor's question and answer that there is no major merger and acquisition plan at the moment, and if there is, it is also the layout and supplement of the relevant industrial chain in the five major business segments.