GREE(SZ:000651) Xin Lang Cai Jing·2025-11-01 08:41Core Insights - Gree Electric Appliances reported a total revenue of 137.65 billion yuan for the first three quarters of 2025, a decrease of 6.62% year-on-year, with a net profit attributable to shareholders of 21.46 billion yuan, down 2.27% [1] - In Q3 2025, the company faced significant revenue pressure, achieving 40.03 billion yuan, a decline of 15.06%, attributed to challenges in the air conditioning sector and intensified market competition [1] - The company is implementing a strategy that combines offline experiences with online live streaming to enhance consumer reach [1] Financial Performance - Q3 2025 gross margin was 28.31%, down 1.36 percentage points, influenced by fluctuations in raw material prices and adjustments in revenue structure [2] - Net profit margin for Q3 2025 increased to 17.72%, up 2.11 percentage points, driven by improved operational efficiency [2] - The company maintained reasonable control over its expense ratios, with sales, management, R&D, and financial expense ratios at 3.47%, 2.89%, 4.26%, and -2.49% respectively [2] Investment Outlook - The domestic consumption market is showing signs of recovery, which is expected to boost internal demand, alongside an accelerating recovery in industrial production [2] - The company aims to refine its product matrix and deepen its focus on household air conditioning and HVAC equipment, while maintaining a high market share in central air conditioning [2] - Plans to increase holdings in Gree Titanium Co. to accelerate the development of its renewable energy business, supported by innovation for green development, are anticipated to contribute to future performance growth [2] - Projected net profits for 2025-2027 are 29.19 billion, 31.79 billion, and 34.22 billion yuan, with corresponding EPS of 5.21, 5.68, and 6.11 yuan, leading to PE ratios of 7.63, 7.00, and 6.51 times [2]