Investment Rating - The industry rating is maintained as "Outperform" [5] Core Viewpoints - In Q1 2025, the home appliance export continued to show double-digit growth, with a notable recovery in export growth in March despite the impact of US tariffs. The export volume maintained a high growth rate of +20%, while the average export price in RMB showed a year-on-year decline of -5% [1][12][16] - The global manufacturing PMI averaged 49.9% in Q1 2025, indicating resilience in international market demand, with exports to over 170 countries and regions achieving growth [1][16] - The North American channel replenishment is expected to support the improvement of domestic home appliance companies' export data [2][25] Summary by Sections Export Data - In March 2025, the domestic home appliance export value was 642 billion RMB, up 14% year-on-year, and 9 billion USD, up 13% year-on-year. In Q1 2025, the export value was 1736 billion RMB, up 10% year-on-year, and 242 billion USD, up 9% year-on-year [1][12] Category Performance - In Q1 2025, major categories such as white goods, kitchen appliances, small appliances, and color TVs maintained positive growth, with white goods leading at a growth rate of 23% [2][20] - In the US, white goods export growth reached 15%, while in Latin America, white goods and small appliances saw impressive growth rates of 46% and 18% respectively [2][22] Inventory and Orders - US durable goods inventory has been declining since Q3 2021, with a year-on-year decrease of about 5% as of Q4 2024, indicating a relatively low inventory level [2][25] Market Trends - The home appliance sector showed a positive performance in the stock market, with the home appliance index rising by 1.89% during the week of April 21-25, 2025 [3][29] - The report suggests that the upcoming peak season for air conditioning and the 618 shopping festival in May will further strengthen retail sales [3][4] Investment Recommendations - Recommended stocks include major appliances like Midea Group, Gree Electric, Haier Smart Home, and Hisense Home Appliances, as well as small appliances like Supor and Feike Electric [4]

Financial Performance - The company's operating revenue for Q1 2025 was ¥3,021,228,727.34, representing a 15.05% increase compared to ¥2,626,059,123.69 in the same period last year[5] - Net profit attributable to shareholders was ¥217,507,609.07, a 4.34% increase from ¥208,450,931.85 year-on-year[5] - Basic and diluted earnings per share both increased by 5.00% to ¥0.21 from ¥0.20[5] - Total operating revenue for the current period reached ¥3,021,228,727.34, an increase of 15.0% compared to ¥2,626,059,123.69 in the previous period[18] - Net profit attributable to the parent company was ¥217,507,609.07, representing a growth of 4.9% from ¥208,450,931.85 in the previous period[19] - The company reported a total comprehensive income of ¥205,080,990.07, an increase from ¥176,285,201.09 in the previous period[20] Cash Flow - The net cash flow from operating activities surged by 118.37% to ¥147,017,570.02, up from ¥67,325,366.47 in the previous year[5] - Operating cash inflow from sales was ¥1,441,084,497.53, slightly up from ¥1,426,296,836.07 in the previous period[21] - The net cash flow from operating activities was $147,017,570.02, an increase from $67,325,366.47 in the previous period, reflecting a significant improvement[22] - The total cash outflow from investing activities was $66,536,958.40, down from $200,485,756.26, indicating a reduction in investment expenditures[22] - The net cash flow from investing activities was -$58,800,565.98, an improvement compared to -$189,191,125.78 in the prior period[22] - The cash inflow from financing activities totaled $10,000,000.00, a decrease from $184,228,812.00, showing a decline in financing activities[22] - The net cash flow from financing activities was -$70,465,267.82, compared to -$89,647,830.67 previously, indicating a smaller cash outflow[22] - The net increase in cash and cash equivalents was $23,465,286.36, contrasting with a decrease of $207,856,739.93 in the previous period[22] - The ending balance of cash and cash equivalents was $2,757,032,937.48, an increase from $2,228,298,143.24, indicating a stronger liquidity position[22] Assets and Liabilities - Total assets decreased by 1.93% to ¥11,919,219,248.18 compared to ¥12,153,293,741.25 at the end of the previous year[5] - The total current assets amount to ¥9,440,087,332.39, down from ¥9,690,022,183.37 at the beginning of the period, representing a decrease of approximately 2.58%[16] - The total non-current assets are valued at ¥2,479,131,915.79, slightly up from ¥2,463,271,557.88, reflecting an increase of approximately 0.64%[16] - The total liabilities amount to ¥5,763,463,307.91, down from ¥6,198,875,484.35, showing a decrease of about 7.05%[16] - Total liabilities decreased to ¥6,198,830,989.15 from ¥6,641,501,611.14, indicating a reduction of approximately 6.7%[17] - The total equity attributable to shareholders increased to ¥5,723,893,566.42, up from ¥5,509,483,365.80, reflecting a growth of 3.9%[17] Expenses - Total operating costs increased to ¥2,825,247,545.57, up 16.0% from ¥2,435,008,789.72 in the previous period[18] - Research and development expenses rose to ¥114,247,226.32, a significant increase of 26.4% compared to ¥90,365,388.83 in the previous period[19] Shareholder Information - The total number of common shareholders at the end of the reporting period is 37,467[12] - Zhuhai Gree Electric Appliances holds 38.46% of shares, totaling 409,774,802 shares[12] Other Information - The company did not undergo an audit for the first quarter report, which may affect the perception of financial reliability[23] - The company will implement new accounting standards starting in 2025, which may impact future financial reporting[23]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 12.678 billion yuan in 2024, representing a year-on-year increase of 11.39%. The net profit attributable to shareholders was 1.045 billion yuan, up 41.58% year-on-year. The non-recurring net profit was 929 million yuan, an increase of 13.16% [6] - In Q4 2024, the company reported a revenue of 3.343 billion yuan, a growth of 13.81%, and a net profit of 396 million yuan, which is a significant increase of 100.2% year-on-year. The non-recurring net profit for the quarter was 300 million yuan, up 52.18% [6] - The company is expected to see continued growth in automotive thermal management and steady improvement in its refrigeration business due to structural optimization and cost reduction [6] Financial Summary - The company's revenue for 2024 was 126.78 billion yuan, with a year-on-year growth of 11.39%. The net profit attributable to shareholders was 10.45 billion yuan, reflecting a 41.58% increase [6] - The revenue breakdown for 2024 shows refrigeration equipment at 1.496 billion yuan (down 9.16%), refrigeration parts at 9.612 billion yuan (up 13.67%), automotive thermal management at 812 million yuan (up 71.66%), and other businesses at 759 million yuan (down 5.97%) [6] - The company’s gross margin for 2024 was 18.22%, a decrease of 0.83 percentage points year-on-year, while the net profit margin was 8.2%, an increase of 0.11 percentage points [7] Earnings Forecast - The forecast for net profit attributable to shareholders for 2025-2027 is 1.121 billion yuan, 1.297 billion yuan, and 1.473 billion yuan respectively, with corresponding EPS of 1.05 yuan, 1.22 yuan, and 1.38 yuan [6][8] - The current price-to-earnings ratio (P/E) is projected to be 11.1 for 2025, 9.6 for 2026, and 8.4 for 2027 [8] Business Segments - The automotive thermal management segment is expected to continue its high growth trajectory, driven by acquisitions and increased orders from major clients. The refrigeration parts segment is anticipated to benefit from domestic subsidies and expansion into overseas markets [6]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [5][16]. Core Views - The company achieved a significant increase in net profit, with a year-on-year growth of 41.6% to reach 1.04 billion yuan in 2024, driven by a strong performance in the heat management segment and the implementation of a replacement policy in the household cooling parts sector [1][2]. - The company is positioned as a leader in the refrigeration components industry, with ongoing structural upgrades in its main appliance business and continuous profit improvement [3]. - The automotive valve market is expected to experience rapid expansion due to increasing demand from the electric vehicle sector, particularly following strategic initiatives from major players like BYD [2]. Financial Performance Summary - In 2024, the company reported total revenue of 12.68 billion yuan, reflecting an 11.4% year-on-year increase, while the gross profit margin was 18.2%, down 1.0 percentage points from the previous year [1][2]. - The company’s operating income for 2024 was 1.76 billion yuan, with a projected net profit of 1.19 billion yuan for 2025, indicating a continued upward trend in profitability [4][10]. - The company’s earnings per share (EPS) for 2024 is estimated at 0.98 yuan, with a price-to-earnings (P/E) ratio of 11.87x [4][10]. Business Segment Performance - The heat management segment generated 810 million yuan in revenue, a substantial increase of 71.7% year-on-year, while the cooling parts segment contributed 9.61 billion yuan, up 13.7% [1]. - The company’s overseas business grew by 17.1% in 2024, outperforming domestic growth, indicating successful expansion strategies [1][3]. Future Projections - The company is expected to achieve net profits of 1.19 billion yuan in 2025, 1.38 billion yuan in 2026, and 1.57 billion yuan in 2027, with corresponding P/E ratios of 10.5x, 9.0x, and 7.9x respectively [3][4].

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [5][16]. Core Views - The company achieved a significant increase in net profit, with a year-on-year growth of 41.6% to reach 1.04 billion yuan in 2024, driven by a strong performance in the household cooling components sector and the benefits from the old-for-new policy [1][2]. - The company is positioned as a leader in the refrigeration components industry, with ongoing structural upgrades in its main appliance business and continuous profit improvement [3]. - The automotive valve market is expected to experience rapid expansion due to increasing demand from the electric vehicle sector, particularly following strategic initiatives from major players like BYD [2]. Financial Performance Summary - In 2024, the company reported total revenue of 12.68 billion yuan, reflecting an 11.4% year-on-year increase, and a gross margin of 18.2%, down 1.0 percentage points from the previous year [1][2]. - The breakdown of revenue by segment shows that thermal management revenue surged by 71.7% to 810 million yuan, while cooling components generated 9.61 billion yuan, up 13.7% [1]. - The company’s net profit is projected to grow to 1.19 billion yuan in 2025, with a corresponding PE ratio of 10.5x [3][4]. Business Outlook - The company is expected to continue benefiting from the old-for-new policy, which is driving growth in valve components, and is also expanding its overseas and commercial business segments [1][3]. - The forecast for net profit from 2025 to 2027 is 1.19 billion yuan, 1.38 billion yuan, and 1.57 billion yuan respectively, indicating a positive growth trajectory [3][4].

Core Insights - Company reported a revenue of 12.678 billion, representing a year-on-year growth of 11.39%, and a net profit of 1.045 billion, showing a significant increase of 41.58% for the year 2024 [2][9] - The company has a diversified business model, with notable growth in the automotive thermal management sector, which saw a revenue increase of 71.66% [2][8] - The company is actively pursuing international market expansion and adapting its business strategies in response to global market conditions, including U.S. tariff policies [3] Financial Performance - In 2024, the company achieved a revenue of 12.678 billion, with a gross margin of 18.22%, which is a decrease of 0.83 percentage points compared to the previous year [2][9] - The breakdown of revenue by business segment shows that the refrigeration parts business generated 9.612 billion, up 13.67%, while the refrigeration equipment business declined by 9.16% to 1.496 billion [2] - The company’s net profit for Q4 2024 was 396 million, reflecting a remarkable year-on-year increase of 100.2% [9] Business Strategy - The company is focusing on enhancing its overseas business resilience and has been expanding its product offerings to cover various sectors, including air conditioning, heat pumps, and data centers [6][8] - The decline in refrigeration equipment revenue is attributed to lower demand in domestic sectors such as real estate and photovoltaics, prompting the company to optimize resource allocation towards high-growth potential areas [5] - The company is committed to continuous innovation and product development to meet diverse market demands and improve competitiveness [7]

Financial Performance - In 2024, the company achieved a revenue of 12.678 billion, representing a year-on-year growth of 11.39% [2] - The net profit attributable to shareholders was 1.045 billion, with a significant increase of 41.58% compared to the previous year [2] - The non-recurring net profit reached 929 million, reflecting a growth of 13.16% [2] - The gross profit margin stood at 18.22%, a decrease of 0.83 percentage points year-on-year [2] Business Segment Analysis - The refrigeration parts business generated a revenue of 9.612 billion, up by 13.67%, with a gross margin of 18.60%, down by 0.84 percentage points [2] - The refrigeration equipment segment saw a revenue decline to 1.496 billion, down 9.16%, with a gross margin of 21.07%, a decrease of 2.71 percentage points [2] - The automotive thermal management business experienced substantial growth, achieving a revenue of 812 million, an increase of 71.66%, with a gross margin of 23.13%, up by 0.76 percentage points [2] Strategic Responses - The company maintains a global perspective and is dynamically adjusting its business strategies in response to U.S. tariff policies, focusing on building a resilient overseas business framework [3] - The refrigeration parts orders remain strong, indicating a healthy production schedule [4] - The decline in refrigeration equipment revenue is attributed to the poor performance of key domestic sectors such as real estate and photovoltaics, prompting the company to explore overseas markets and optimize resource allocation towards high-growth potential sectors [5] Business Development Initiatives - The commercial components business has undergone significant transformation, expanding from a single central air conditioning focus to a diverse range of solutions including air conditioning, heat pumps, and data centers [6] - The company has made breakthroughs in research and development for commercial components, enhancing product performance to meet diverse market demands [6] - The electric vehicle thermal management business is rapidly growing, with revenues significantly increasing in 2024, and the company plans to further invest in this area to boost market share [6]

Core Insights - The company reported better-than-expected performance in 2024, achieving total revenue of 12.678 billion yuan, a year-on-year increase of 11%, and a net profit attributable to shareholders of 1.045 billion yuan, up 42% year-on-year [1] - The fourth quarter saw revenue of 3.343 billion yuan, a 14% increase year-on-year, and a net profit of 396 million yuan, which is a 100% increase year-on-year [1] - The company’s operating cash flow reached 1.161 billion yuan, a 43% increase year-on-year, indicating improved operational quality [4] Business Performance - The refrigeration parts business benefited from the old-for-new policy, achieving sales of 9.612 billion yuan in 2024, a 13.7% increase year-on-year, aligning with industry averages [2] - The company maintained a leading position in the market for key components, with the market share for shut-off valves being the highest globally, and second for four-way valves and electronic expansion valves [1] - The automotive thermal management segment saw significant growth, with sales reaching 812 million yuan, a 71.7% increase year-on-year, driven by the competitive advantage of its large-diameter valves [3] Market Outlook - The company anticipates a 17.1% growth in sales from transactions with Gree, projecting 2.9 billion yuan in 2025 compared to 2.477 billion yuan in 2024 [3] - Despite challenges in the central air conditioning market, which saw a 19.1% decline, the company’s refrigeration equipment sales were 1.496 billion yuan, down 9.2% year-on-year [3] - The company has raised its profit forecasts for 2025 and 2026, expecting net profits of 1.17 billion yuan and 1.35 billion yuan respectively, reflecting a positive growth outlook [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's performance exceeded expectations, with total revenue for 2024 reaching 12.68 billion yuan, a year-on-year increase of 11%, and net profit attributable to shareholders reaching 1.045 billion yuan, a year-on-year increase of 42% [6] - The company has adjusted its profit forecasts upwards, expecting net profits of 1.17 billion yuan in 2025 and 1.35 billion yuan in 2026, reflecting growth rates of 12% and 15% respectively [6] Financial Data and Profit Forecast - Total revenue projections for the company are as follows: - 2023: 11.38 billion yuan - 2024: 12.68 billion yuan - 2025E: 14.38 billion yuan - 2026E: 15.72 billion yuan - 2027E: 17.61 billion yuan - Year-on-year growth rates are projected at 11.5%, 11.4%, 13.4%, 9.3%, and 12.0% respectively [5][8] - Net profit attributable to shareholders is forecasted as follows: - 2023: 738 million yuan - 2024: 1.045 billion yuan - 2025E: 1.17 billion yuan - 2026E: 1.348 billion yuan - 2027E: 1.592 billion yuan - Year-on-year growth rates are projected at -11.5%, 41.6%, 12.0%, 15.2%, and 18.1% respectively [5][8] - The company achieved a sales net profit margin of 8.2% in 2024, an increase of 1.8 percentage points year-on-year, and a historical high in operating net profit margin [6]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 15.54 [7][8]. Core Views - The company's net profit performance exceeded expectations, with a reported net profit of RMB 1.045 billion for 2024, representing a year-on-year increase of 41.58% [1][6]. - The revenue for 2024 is projected at RMB 12.678 billion, reflecting a year-on-year growth of 11.39% [1][6]. - The company is expected to maintain stable growth in its core business related to air conditioning, despite potential short-term impacts from US tariffs [1][2]. - The automotive parts business is anticipated to continue benefiting from the growth in electric vehicle sales, maintaining a high growth rate [3]. Summary by Sections Revenue and Profitability - The company reported a revenue of RMB 12.678 billion for 2024, up 11.39% year-on-year, with a net profit of RMB 1.045 billion, up 41.58% year-on-year [1][6]. - The revenue for Q4 2024 showed a year-on-year increase of 13.81%, with net profit doubling at 100.2% year-on-year [1]. Business Segments - The refrigeration parts segment benefited from a 19.5% increase in air conditioning production in 2024, with the company's valve business growing by 13.7% [2]. - The automotive parts segment achieved a revenue of RMB 810 million in 2024, a significant increase of 72% year-on-year, aided by the acquisition of Shanghai Dacai [3]. Margin and Cost Structure - The gross margin for 2024 was reported at 18.2%, a decrease of 0.97 percentage points year-on-year, primarily due to rising copper prices [4]. - The company managed to reduce its expense ratio by 0.6 percentage points year-on-year, with sales and financial expense ratios also declining [4]. Future Outlook - For 2025, the company anticipates revenue growth to RMB 14.041 billion, with a projected EPS of RMB 1.11, reflecting an 8% and 7% upward adjustment for 2025 and 2026 respectively [5][6]. - The target price of RMB 15.54 corresponds to a PE ratio of 14x for 2025, considering the potential impact of US tariffs on air conditioning exports [5].