GREE(000651) 国联证券·2024-09-03 06:00Investment Rating - The investment rating for Gree Electric Appliances is "Buy" (maintained) [5][7]. Core Views - Gree Electric Appliances reported stable revenue in Q2 2024, with strong performance expected due to frequent high temperatures and the gradual implementation of domestic sales policies, which may improve industry demand and company operations [2][7]. - The company's PE valuation is relatively low compared to other leading white goods manufacturers, and it offers an attractive dividend yield [2][7]. Financial Performance Summary - In H1 2024, Gree Electric achieved operating revenue of 99.783 billion yuan, a year-on-year increase of 0.55%, and a net profit attributable to shareholders of 14.136 billion yuan, up 11.54% year-on-year [7]. - Q2 2024 revenue was 63.419 billion yuan, a decrease of 0.57% year-on-year, while net profit attributable to shareholders was 9.461 billion yuan, an increase of 10.47% year-on-year [7]. - The air conditioning segment saw revenue of 77.961 billion yuan in H1 2024, growing by 11.38% year-on-year, outperforming the overall company growth [7]. - Domestic sales revenue reached 75.119 billion yuan, up 9.01% year-on-year, while export revenue was 14.825 billion yuan, increasing by 15.64% year-on-year [7]. - The overall gross margin improved by 1.72 percentage points year-on-year, with Q2 gross margin up by 1.57 percentage points year-on-year [7][9]. Cash Flow and Inventory Management - Operating cash flow for H1 2024 was 5.122 billion yuan, with Q2 showing a significant improvement to 8.063 billion yuan [7]. - As of June 30, 2024, contract liabilities decreased to 14.106 billion yuan, down 6.385 billion yuan from the previous quarter [7]. - Inventory levels were reported at 29.123 billion yuan, a decrease of 5.104 billion yuan from the previous quarter [7]. Future Outlook - The company anticipates improved operational performance in the coming quarters due to favorable weather conditions and the implementation of supportive domestic policies [2][7]. - Projected net profits for 2024 and 2025 are expected to be 32 billion yuan and 35.5 billion yuan, respectively, with current PE ratios of 7.0 and 6.3 times [7].