GREE(SZ:000651) 3 6 Ke·2025-10-09 12:12Core Viewpoint - The significant disparity in PE ratios among Gree Electric, Midea Group, and Haier Smart Home indicates a substantial market value gap, with Gree's market capitalization being less than half of Midea's despite being a leading player in the home appliance industry [1][2]. Group 1: Market Performance - During the "9·24" period, the Shenzhen Component Index rose by 67%, while Gree Electric's stock price only increased by 27.15%, highlighting its underperformance relative to the broader market [2]. - Gree Electric's market capitalization stands at 224 billion yuan, significantly lower than Midea Group's 568.53 billion yuan, reflecting a stark valuation difference [2]. Group 2: Business Stability - Gree Electric has maintained a stable business foundation, with its air conditioning and consumer electronics segments generating over 100 billion yuan in revenue, which constitutes its core competitive advantage [3][4]. - The air conditioning business has shown a compound annual growth rate (CAGR) of 8.66% from 2020 to 2023, indicating consistent growth [4]. Group 3: Financial Metrics - Gree Electric's net profit has grown at a CAGR of 9.76% since 2020, outpacing revenue growth, which stands at 2.75%, demonstrating high profitability quality [7]. - The company's asset-liability ratio has remained stable, with a peak of 71.30% in 2022, but has since decreased to 61.55% in 2024, indicating improved financial health [10]. Group 4: R&D and Innovation - Gree Electric has consistently increased its R&D investment, maintaining a spending rate of 3%-4% of revenue, which supports its competitive positioning [11][13]. - The company has launched innovative products, such as those featuring AI dynamic energy-saving technology, which have seen significant sales growth, indicating a strong focus on product development [14]. Group 5: Market Position and Growth Potential - Gree Electric holds a 23.44% market share in online air conditioning sales, slightly below Midea's 24.06%, but has shown strong monthly performance, surpassing Midea in August [5]. - The increasing temperatures and rising disposable incomes are expected to drive further demand for air conditioning, suggesting potential growth opportunities for Gree Electric [16][17]. Group 6: Valuation Discrepancy - Gree Electric's PE ratio is only half that of Midea and Haier, raising questions about the market's perception of its growth potential compared to its competitors [19]. - Despite having a higher return on invested capital (ROIC) than its peers, Gree Electric's market valuation does not reflect its superior profitability, indicating a potential undervaluation [19].