000651 (Gree Electric Appliances Inc of Zhuhai) vs Shanghai Composite Comparison

000651

Shanghai Composite

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000651

Shanghai Composite

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000651

Shanghai Composite

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Shanghai Composite

000651

000333

600690

WHR

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Gree Electric Appliances Inc of Zhuhai
Glance View

Market Cap

259.2B CNY

Industry

Consumer products

In the heart of China's vibrant manufacturing sector, Gree Electric Appliances Inc., headquartered in Zhuhai, has carved an extraordinary narrative of industrial growth and ingenuity. Established in 1991, the company began its journey as a humble manufacturer of residential air conditioners. Over the years, Gree has transcended its foundational roots to become a global titan, adeptly navigating the complexities of international markets while maintaining its reputation for innovation and quality. The company's core proficiency lies in its vast production capabilities and commitment to technological advancement, ensuring it consistently meets the evolving demands of consumer and commercial markets. Gree's vertically integrated model entails controlling every aspect of its supply chain—from research and development to manufacturing and sales—placing it in a formidable position to optimize costs and elevate product excellence. As Gree expanded its horizons, the pursuit of diversification became intrinsic to its business model. Today, the company engages in a broader spectrum of the appliance industry, encompassing air conditioning, home appliances, smart equipment, industrial technology, and even forays into renewable energy. A significant portion of Gree's revenue is driven by its international sales, underpinned by a vast distribution network and strategic partnerships worldwide. The company capitalizes on its robust R&D capabilities to sustain a competitive edge, driving innovations in energy efficiency and smart home technology. This relentless focus not only enhances its product offerings but also fortifies its market presence in a rapidly evolving global landscape. The symbiotic relationship between its expansive product range and deep-rooted commitment to quality continues to propel Gree Electric Appliances as a stalwart in the industry, synonymous with reliability and technological prowess.

View Gree Electric Appliances Inc of Zhuhai Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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000651

vs

Shanghai Composite

Stocks Performance
000651 vs Shanghai Composite

Performance Gap
000651 vs Shanghai Composite

Performance By Year
000651 vs Shanghai Composite

Competitors Performance
Gree Electric Appliances Inc of Zhuhai vs Peers

Gree Electric Appliances Inc of Zhuhai
Glance View

Company

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CN		Hisense Home Appliances Group Co Ltd SZSE:000921	Add
CN		Beijing Roborock Technology Co Ltd SSE:688169	Add
CN	H	Hangzhou Greatstar Industrial Co Ltd SZSE:002444	Add
FR		SEB SA PAR:SK	Add
IT		De' Longhi SpA MIL:DLG	Add

CN		Midea Group Co Ltd SZSE:000333	Select
CN		Haier Smart Home Co Ltd SSE:600690	Select
US	S	Sharkninja Inc NYSE:SN	Select
US		Whirlpool Corp NYSE:WHR	Select
CN		Zhejiang Supor Co Ltd SZSE:002032	Select
CN		Hisense Home Appliances Group Co Ltd SZSE:000921	Select
CN		Beijing Roborock Technology Co Ltd SSE:688169	Select
CN	H	Hangzhou Greatstar Industrial Co Ltd SZSE:002444	Select
FR		SEB SA PAR:SK	Select
IT		De' Longhi SpA MIL:DLG	Select

	Johnson & Johnson NYSE:JNJ	143.29 USD -0.62%
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	Mastercard Inc NYSE:MA	517.825 USD -0.8%
	UnitedHealth Group Inc NYSE:UNH	514.34 USD 0.26%
	Exxon Mobil Corp NYSE:XOM	109.285 USD 1.32%

000651 vs Shanghai Composite

Stocks Performance 000651 vs Shanghai Composite

Performance Gap 000651 vs Shanghai Composite

Performance By Year 000651 vs Shanghai Composite

Competitors Performance Gree Electric Appliances Inc of Zhuhai vs Peers

Gree Electric Appliances Inc of Zhuhai Glance View

Company

Help

Tools

Stocks

000651

vs

Shanghai Composite

Stocks Performance
000651 vs Shanghai Composite

Performance Gap
000651 vs Shanghai Composite

Performance By Year
000651 vs Shanghai Composite

Competitors Performance
Gree Electric Appliances Inc of Zhuhai vs Peers

Gree Electric Appliances Inc of Zhuhai
Glance View