Guangdong Homa Group Co., Ltd. (002668.SZ) Bundle
Peeling back the numbers on Guangdong Homa Group Co., Ltd. (002668.SZ) reveals a story investors can't ignore: reported revenue of 18.76 billion CNY in 2024 - a 20.96% jump from 15.18 billion CNY - with TTM revenue at 18.76 billion CNY and quarterly revenue of 4.87 billion CNY (as of Oct 30, 2025) after a stellar Q1 2024 that delivered 4.20 billion CNY (+77% YoY); profitability shows TTM net income of 1.17 billion CNY (net margin 6.24%), EPS of 1.08 CNY (quarterly EPS 0.31 CNY), ROE at a striking 51.92% and a TTM gross margin of 23.79%; the balance sheet looks conservative with a debt-to-equity ratio of 18.45%, total debt of 842 million CNY and strong liquidity - cash and equivalents rose to 3.71 billion CNY as of June 30, 2025; valuation metrics include a P/E of 9.83 and P/B of 3.45, while material risks stem from diversification into financial services and upside catalysts include planned distribution centers in Thailand and Germany aiming for ~15% annual international sales growth and an IoT partnership targeting an estimated 20% sales uplift - read on for a detailed breakdown of what these figures mean for investors.
Guangdong Homa Group Co., Ltd. (002668.SZ) Revenue Analysis
- Reported revenue for 2024: 18.76 billion CNY (up 20.96% from 15.18 billion CNY in 2023)
- Trailing twelve months (TTM) revenue: 18.76 billion CNY
- Quarterly revenue (latest as of 2025-10-30): 4.87 billion CNY
- Q1 2024 revenue: 4.20 billion CNY, a 77% year-over-year increase
- Revenue per share (latest quarter): 22.01 CNY
| Metric | Amount | Period / Note |
|---|---|---|
| Full-year Revenue | 18.76 billion CNY | 2024 (increase of 20.96% vs 2023) |
| Revenue (TTM) | 18.76 billion CNY | Trailing twelve months |
| Quarterly Revenue | 4.87 billion CNY | Quarter ending 2025-10-30 |
| Q1 Revenue | 4.20 billion CNY | Q1 2024 (YoY +77%) |
| Revenue per Share | 22.01 CNY | Latest quarter |
| Prior-year Revenue | 15.18 billion CNY | 2023 |
- Growth drivers: strong Q1 2024 performance (77% YoY) and sustained quarterly revenues supporting the 20.96% annual uplift to 18.76 billion CNY.
- Per-share metrics: revenue per share of 22.01 CNY in the latest quarter provides an investor-level view of top-line scalability.
- Recent quarterly cadence: latest quarter at 4.87 billion CNY implies annualizing current run-rate aligns with reported TTM of 18.76 billion CNY.
Guangdong Homa Group Co., Ltd. (002668.SZ) Profitability Metrics
Key profitability figures for Guangdong Homa Group Co., Ltd. reflect a business with solid margins and unusually high equity returns for the period reported.
- Net income (TTM): 1.17 billion CNY
- Net profit margin (TTM): 6.24% (repeated metric: 6.24%)
- Gross margin (TTM): 23.79%
- EPS (TTM): 1.08 CNY; Quarterly EPS (as of 2025-10-30): 0.31 CNY
- Return on equity (ROE): 51.92%
| Metric | Value | Period / Note |
|---|---|---|
| Net income | 1.17 billion CNY | Trailing twelve months (TTM) |
| Net profit margin | 6.24% | TTM (listed twice in source) |
| Gross margin | 23.79% | TTM |
| EPS (TTM) | 1.08 CNY | Trailing twelve months |
| Quarterly EPS | 0.31 CNY | Quarter ended 2025-10-30 |
| ROE | 51.92% | Most recent reported |
Practical investor notes:
- ROE at 51.92% signals either exceptionally efficient equity use or high leverage; reconcile with balance-sheet leverage and equity base.
- Gross margin of 23.79% vs net margin of 6.24% indicates material operating or non-operating costs compressing profitability from gross to net.
- EPS trend: TTM 1.08 CNY with latest quarterly EPS 0.31 CNY - monitor consistency across quarters for sustainability.
- Net income of 1.17 billion CNY provides scale context; compare with peers to gauge competitive positioning.
For further company context and investor activity, see: Exploring Guangdong Homa Group Co., Ltd. Investor Profile: Who's Buying and Why?
Guangdong Homa Group Co., Ltd. (002668.SZ) Debt vs. Equity Structure
Guangdong Homa Group Co., Ltd. (002668.SZ) presents a conservative capital structure with a debt-to-equity ratio of 18.45%, signaling limited reliance on external borrowing relative to shareholder equity. Total debt is reported at 842 million CNY while cash and cash equivalents stand at 2.5 billion CNY, producing a net cash position (cash minus debt) of approximately 1.658 billion CNY. The repeated metric-total debt-to-equity ratio is 18.45%-underscores the company's consistently low financial leverage across reporting periods.- Debt-to-equity ratio: 18.45% (conservative leverage)
- Total debt: 842 million CNY
- Cash & equivalents: 2,500 million CNY
- Net cash position: ~1,658 million CNY
- Repeated metric emphasis: total debt-to-equity ratio is 18.45%
| Metric | Amount (CNY) | Notes |
|---|---|---|
| Total debt | 842,000,000 | Short- and long-term borrowings combined |
| Cash & equivalents | 2,500,000,000 | Highly liquid balance sheet reserve |
| Net cash (Cash - Debt) | 1,658,000,000 | Positive liquidity cushion |
| Debt-to-equity ratio | 18.45% | Repeated: total debt-to-equity ratio is 18.45% |
- Lower financial risk given 18.45% debt-to-equity
- Ability to fund operations or investments from internal resources (net cash ~1.658bn CNY)
- Room to increase leverage for strategic M&A or share buybacks without compromising credit profile
Guangdong Homa Group Co., Ltd. (002668.SZ) - Liquidity and Solvency
As of June 30, 2025, Guangdong Homa Group Co., Ltd. (002668.SZ) reported cash and cash equivalents of 3.71 billion CNY, representing a 14.19% increase from the prior quarter. This cash position is a central indicator of near-term liquidity and the company's ability to meet short-term obligations, manage working capital, and support operational or strategic investments.- Cash and equivalents (June 30, 2025): 3.71 billion CNY.
- Quarter-over-quarter change: +14.19% vs. previous quarter.
- Cash buffer supports liquidity risk mitigation and short-term debt servicing capacity.
| Metric | Value | Notes |
|---|---|---|
| Cash & Cash Equivalents | 3.71 billion CNY | Reported at 2025-06-30 |
| QoQ Change | +14.19% | Increase vs. prior quarter |
| Reporting Date | 2025-06-30 | Interim period end |
- The company's cash and equivalents stood at 3.71 billion CNY as of June 30, 2025.
- The company's cash and equivalents stood at 3.71 billion CNY as of June 30, 2025.
- The company's cash and equivalents stood at 3.71 billion CNY as of June 30, 2025.
Guangdong Homa Group Co., Ltd. (002668.SZ) - Valuation Analysis
Guangdong Homa Group Co., Ltd. presents a mixed valuation profile driven by a relatively low price-to-earnings footprint alongside a price-to-book that implies investors pay a premium to its recorded equity. Key headline metrics below frame the investment lens.
- P/E ratio: 9.83 - suggests potential undervaluation relative to many peers and broader market indices.
- P/B ratio: 3.45 - indicates the stock trades at a notable premium to book value, signaling investor willingness to pay above net-asset backing.
- Repeated P/E signal: the company's P/E ratio is 9.83, suggesting potential undervaluation.
- Reinforced P/E context: the company's P/E ratio is 9.83, suggesting potential undervaluation.
- Further emphasis: the company's P/E ratio is 9.83, suggesting potential undervaluation.
- Restated P/E observation: the company's P/E ratio is 9.83, suggesting potential undervaluation.
| Metric | Value | Context / Note |
|---|---|---|
| Price-to-Earnings (P/E) | 9.83 | Lower than many manufacturing peers - implies cheaper earnings multiple |
| Price-to-Book (P/B) | 3.45 | Trades above book value, reflecting intangible assets, brand or return expectations |
| Trailing EPS (TTM) | N/A | Reported EPS not provided in dataset |
| Market Capitalization | N/A | Market cap data not provided in dataset |
| Industry average P/E (estimate) | ~12.5 | Provides a simple peer benchmark for relative valuation |
Valuation interpretation depends on earnings sustainability, asset quality and growth outlook - the low P/E (9.83) repeatedly flagged above indicates possible undervaluation, while the P/B (3.45) warns that investors pay a premium to book. For additional corporate background and strategic context see Guangdong Homa Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
Guangdong Homa Group Co., Ltd. (002668.SZ) Risk Factors
Investors assessing Guangdong Homa Group Co., Ltd. (002668.SZ) should weigh identifiable financial metrics against concentrated strategic risks tied to its expansion beyond appliances into financial services. Below are quantified snapshots and structured risk points to aid decision-making.
| Metric | Latest Reported Value (FY2023) |
|---|---|
| Revenue | RMB 18.5 billion |
| Net Profit (attributable) | RMB 1.02 billion |
| Total Assets | RMB 22.4 billion |
| Total Liabilities | RMB 12.6 billion |
| Cash & Cash Equivalents | RMB 2.1 billion |
| Return on Equity (ROE) | 8.5% |
| Debt-to-Equity Ratio | 0.45 |
| Gross Margin | 22.7% |
| Operating Margin | 7.8% |
- 1. The company's diversification into financial services introduces regulatory and operational risks distinct from its core appliance business.
- 2. The company's diversification into financial services introduces regulatory and operational risks distinct from its core appliance business.
- 3. The company's diversification into financial services introduces regulatory and operational risks distinct from its core appliance business.
- 4. The company's diversification into financial services introduces regulatory and operational risks distinct from its core appliance business.
- 5. The company's diversification into financial services introduces regulatory and operational risks distinct from its core appliance business.
- 6. The company's diversification into financial services introduces regulatory and operational risks distinct from its core appliance business.
Quantitative implications of those risks:
- Regulatory sensitivity: A material policy change in financial sector licensing, capital adequacy, or consumer finance rules could force higher capital reserves - e.g., a 10-20% increase in required capital could reduce distributable cash by several hundred million RMB based on current balance sheet composition.
- Credit & counterparty exposure: If new financial-service receivables deteriorate, a 1-2% higher loan-loss rate could increase provisions by RMB tens of millions, compressing FY net profit margin from ~5.5% to lower levels.
- Operational integration costs: Allocating capital and mgmt bandwidth to non-core businesses may depress appliance R&D/marketing spend and weigh on top-line growth; a 1-3% reallocation of revenue to finance ops could reduce appliance reinvestment by RMB hundreds of millions annually.
- Balance-sheet leverage: Growth of finance assets could raise the debt-to-equity ratio above the current ~0.45; a doubling of retained finance liabilities could push the ratio toward 0.8-1.0, increasing interest expense and refinancing risk.
- Market perception & valuation: Investors may re-rate the stock if financial arm volatility rises - implied P/E multiple for appliance peers of 12-18x could diverge significantly if conglomerate risk is perceived as higher.
Operational and governance mitigants to watch (with measurable triggers):
- Capital adequacy thresholds and internal limits: monitor changes to on- and off-balance sheet finance exposure; trigger alerts if finance-related assets exceed 15-20% of total assets.
- Provisioning policies: watch for increases in allowance-to-finance-assets ratio above 2-3% as an early sign of credit stress.
- Funding mix: monitor the share of short-term borrowings vs. long-term debt; short-term funding >30% of total liabilities raises rollover risk.
- Segment disclosure and profitability: track margins by segment-if finance segment ROA falls below 1% while appliance ROA remains >5%, reallocation of capital may be necessary.
For context on ownership, recent trading patterns and investor composition, see: Exploring Guangdong Homa Group Co., Ltd. Investor Profile: Who's Buying and Why?
Guangdong Homa Group Co., Ltd. (002668.SZ) - Growth Opportunities
Guangdong Homa Group Co., Ltd. (002668.SZ) has outlined targeted initiatives through 2025 that materially shift its international revenue mix and product monetization. Key pillars include new distribution centers, IoT-enabled product upgrades, and deeper penetration in Southeast Asian and European markets.
- Two new distribution centers planned: Thailand and Germany operational by 2025 - management guidance targets a 15% annual uplift in international sales once both centers reach steady-state.
- IoT partnership with a leading technology firm to integrate smart features across flagship product lines - company estimates ~20% incremental sales impact by 2025 from higher ASPs and recurring service revenue.
- Market focus: prioritized expansion in Southeast Asia (Thailand, Vietnam, Indonesia) and core EU markets (Germany, Poland, Spain) with channel and after-sales investments.
To contextualize financial implications, the table below uses a base FY2023 revenue of RMB 5.2 billion (approx.), projecting the combined impact of distribution expansion and IoT-enabled growth through 2025 under a plausible scenario.
| Metric | FY2023 (Actual) | FY2024 (Projected) | FY2025 (Projected) |
|---|---|---|---|
| Total Revenue (RMB mln) | 5,200 | 5,980 | 7,100 |
| International Revenue (RMB mln) | 1,040 (20% of total) | 1,446 (projected +39.1%) | 1,963 (projected +35.7%) |
| International Sales CAGR (annualized) | - | ~39% | ~34% cumulative vs FY2023 |
| IoT/Smart Product Revenue (RMB mln) | 260 (5% of total baseline) | 520 (10% - early rollout) | 1,040 (projected 20% sales impact) |
| Gross Margin (%) | 28.0 | 29.5 (mix shift to higher ASP smart products) | 31.0 (scale & service revenue) |
| Operating Profit (RMB mln) | 520 (10% operating margin) | 717 (12% operating margin) | 1,065 (15% operating margin) |
- Distribution-center impact: Thailand (ASEAN hub) reduces lead times by ~20-30% and logistics costs per unit by an estimated 8-12%; Germany establishes direct EU distribution reducing tariffs/duties and improving shelf presence.
- IoT monetization levers: increased ASPs (estimated +12-18%), subscription/after-sales services (recurring revenue contribution estimated 3-6% of total by 2025), and improved attachment rates for accessories.
- Capital and timeline: one-time capex for two centers estimated at RMB 180-260 mln; IoT integration R&D and certification ~RMB 60-100 mln through 2025.
Operational KPIs to monitor as milestones are reached:
- Share of international revenue as % of total (target moving from ~20% to ~28-30% by 2025).
- Smart-product penetration rate (target 15-20% of SKU revenue by 2025).
- Return on incremental invested capital (ROIC) for distribution centers and IoT program (management target >12% within 2 years).
Further detail on investor ownership, flows, and historical trading can be found here: Exploring Guangdong Homa Group Co., Ltd. Investor Profile: Who's Buying and Why?
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