GREE(SZ:000651) Xin Lang Cai Jing·2025-09-03 00:39Core Viewpoint - The company reported a decline in revenue for the first half of 2025, with a slight increase in net profit, indicating mixed performance amid challenging market conditions [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 97.32 billion yuan, a year-on-year decrease of 2.46%, while net profit attributable to shareholders was 14.41 billion yuan, an increase of 1.95% [1]. - For Q2 2025, the company recorded revenue of 55.98 billion yuan, down 12.11% year-on-year, and net profit of 8.61 billion yuan, a decline of 10.07% [1]. Segment Analysis - The consumer electronics segment generated revenue of 76.28 billion yuan, a decrease of 5% year-on-year, while the industrial and green energy/intelligent equipment/other main segments saw revenue growth of 17%, 21%, and 17% respectively, supporting the company's diversification strategy [2]. - Domestic sales amounted to 71.16 billion yuan, down 5.27% year-on-year, with a gross margin of 34.56%, a decrease of 0.65 percentage points. In contrast, external sales reached 16.34 billion yuan, an increase of 10.19% year-on-year, with a gross margin of 18.06%, down 0.17 percentage points [2]. Valuation - The company maintains a good operating cash flow status, with stable profitability and a diversified layout, providing a safety margin through high dividends and low valuation [3]. - EPS forecasts for 2025-2027 are 5.87, 6.05, and 6.29 yuan per share, respectively, with a revised valuation of 10x PE, leading to a target price of 58.70 yuan, reflecting a 3% decrease [3].