GREE(SZ:000651) Shen Zhen Shang Bao·2025-10-31 06:35Core Viewpoint - Gree Electric's Q3 2025 financial results show a significant decline in both revenue and net profit, primarily due to pressure in the air conditioning sector and changes in distribution channels [1][2][3]. Financial Performance - Q3 2025 revenue reached 39.855 billion yuan, a year-on-year decrease of 15.09% - Net profit attributable to shareholders was 7.049 billion yuan, down 9.92% year-on-year - For the first three quarters, total revenue was 137.18 billion yuan, a decline of 6.50%, with net profit at 21.461 billion yuan, down 2.27% [1][2]. Operational Challenges - The decline in performance is attributed to the reduction of national subsidies and weakened retail and shipment growth in the air conditioning sector - Despite a slight improvement in online retail market share, channel reforms are still impacting domestic sales [1][3]. Future Outlook - Analysts have revised down the net profit forecasts for 2025 and 2026 by 5.1% and 5.2% to 30.9 billion yuan and 32.1 billion yuan respectively - The current stock price corresponds to a P/E ratio of 7.3x for 2025 and 7.1x for 2026, with a target price adjustment down by 5% to 49.40 yuan, indicating a potential upside of 22.1% from the current price [3]. Dividend Announcement - Gree Electric announced a cash dividend distribution plan, proposing to pay 10 yuan per 10 shares to all shareholders, totaling 5.585 billion yuan [3]. Market Reaction - Following the earnings report, Gree Electric's stock fell by 1.78%, trading at 39.75 yuan per share, with a total market capitalization of 222.7 billion yuan [4].