On the evening of April 29, Haier Smart Home, Midea Group, and Gree Electric successively announced the first quarter report of 2024. The outstanding performance of the three companies drove the overall home appliance stock sector to rise sharply. As of the close of trading on April 30, Haier Smart Home rose 5.07%, Midea Group rose 2.32%, and Gree Electric rose 3.97%.
So, why did Haier Smart Home's stock price rise the most? What is the relationship between the difference in the stock price increase of the three companies and the financial report data? Through the data of multiple dimensions such as the first quarter financial report and the annual report, we can see that the increase in stock price is the most objective embodiment of these data.
Let's start with an external analysis.
Let's take a look at the financial results for the first quarter of 2024.
Judging from the financial report data, the profit growth rate of the three companies exceeded double digits, among which Haier Smart Home had the fastest growth rate of 20.2%. The author found that the ranking of profit growth rate is consistent with the ranking of stock price growth.
Looking at only one quarter may not be clear enough, let's look at the compound growth rate of earnings in the first quarter of the past three years.
As can be seen from the above table, Haier Smart Home has a compound growth rate of 16.3% in the past three years, the fastest growth rate among the leading enterprises.
After reading the first quarterly report, also look at the 2023 annual report.
As can be seen from the data in the chart, the net profit growth rate of the three companies in 2023 will exceed double digits. Among them, Haier Smart Home's profit growth rate in 2021 will be 47.23%, 12.49% in 2022, and 12.81% in 2023. From these three data, it can be seen that the growth of Haier Smart Home is the most stable.
Looking back at the past three years, Haier Smart Home's performance has been very stable, with a compound profit growth rate of 12.7% in the past three years, which is also the highest growth rate of leading enterprises.
Home appliance stocks are an important "white horse stock" of A-shares, and they are also heavy stocks of the fund, which are long-term investment targets, so the compound growth rate in the past three years is a very important indicator. Judging from the profit growth rate in the first quarter and the compound growth rate in the past three years, Haier Smart Home has the highest TOP3, especially the profit growth rate of more than 20% in 2024Q1, which has stimulated a sharp rise in stock prices.
Secondly, from the perspective of internal analysis.
For a long time, among the big three, Haier Smart Home's fee rate and net profit margin have been the focus of investors' attention. For this reason, the author specifically checked the net profit margin in 2022, 2023 and the first quarter of 2024, and the specific data are as follows:
From the trend point of view, Haier Smart Home's net profit margin in 2023 is 6.3%, and the net profit margin in Q1 of 2023 is 6.9%, which can be seen that Haier Smart Home's operating quality has been steadily improved. In addition, Haier Smart Home's 2024Q1 fee rate has been optimized by 0.8pct, and it has also been continuously optimized in 8 financial reports in the past two years, which proves that Haier Smart Home has been effective in reducing digital fees, and the net profit margin will continue to grow.
epilogue
From the comparison of these data, it can be seen that the rise and fall of the stock prices of the three companies are actually closely related to the performance. Of course, this is only a temporary market performance, if it is extended for a long time, from the year-to-date (as of April 30), Haier Smart Home's share price has risen by 44.1%, Midea Group has risen by 27.73%, and Gree Electric has risen by 30.93%. This shows that the more stable the performance of a company, the more potential it has for future development, and the more it will be recognized by the capital market.