格力电器：1H24空调收入积极，盈利释放稳健

Investment Rating - Investment Rating: Buy [1] - Target Price: RMB 47.44 [1] Core Views - The company reported a steady release of net profit, maintaining its position as a low-valuation, high-dividend benchmark in the air conditioning sector [1] - The company achieved a total revenue of RMB 100.29 billion in 1H2024, a year-on-year increase of 0.5%, with a net profit attributable to shareholders of RMB 14.14 billion, up 11.5% year-on-year [1] - The focus remains on air conditioning while steadily promoting channel reforms and accelerating the development of diverse potential businesses [1] Revenue and Profitability - In 1H2024, the air conditioning business generated revenue of RMB 77.96 billion, a year-on-year increase of 11.38% [2] - The second quarter of 2024 saw a slight decline in revenue by 0.6% year-on-year, but net profit increased by 10.5% [1][2] - The company’s net profit margin is expected to remain high, supported by ongoing channel reforms and a third employee stock ownership plan aimed at achieving a return on equity of no less than 20% for 2024/25 [5] Channel Reform and Efficiency - The company continues to optimize its overall efficiency through channel reforms, with the establishment of a home appliance operation department to enhance channel efficiency [3] - Inventory turnover significantly improved to 82.2 days in 1H2024, a decrease of 17.5 days year-on-year [3] Diversification and Business Expansion - The company is steadily advancing its diversified business, with life appliances, industrial products, and smart equipment showing year-on-year growth of 11%, 13%, and 5% respectively, while green energy business saw a decline of 32% [4] - The company aims to cover a full range of products in life appliances, including refrigeration, kitchen appliances, and medical beauty products [4] Valuation and Market Position - As of August 30, 2024, the company's PE TTM is only 7.6 times, significantly below the historical average of 17.6% over the past five years, indicating potential for valuation recovery [5] - The company is expected to maintain a high dividend yield, reinforcing its status as a low-valuation, high-dividend benchmark in the home appliance sector [5]