GREE(SZ:000651) Haitong Securities·2024-09-05 06:41Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a stable revenue performance with a year-on-year revenue increase of 0.55% to 100.29 billion yuan in the first half of 2024, and a net profit attributable to shareholders of 14.14 billion yuan, up 11.54% year-on-year [6] - The revenue breakdown shows that air conditioning products generated 78 billion yuan (up 11% year-on-year), industrial products 6.2 billion yuan (up 13% year-on-year), and home appliances 2.4 billion yuan (up 11% year-on-year) [6] - The company is expected to benefit from the "old-for-new" policy in the second half of the year, with projected net profits of 31 billion yuan, 33.3 billion yuan, and 35.4 billion yuan for 2024-2026 [6] Summary by Sections Financial Performance - In Q2 2024, the company achieved revenue of 63.69 billion yuan, a decrease of 0.63% year-on-year, with a net profit of 9.46 billion yuan, an increase of 10.47% year-on-year [6] - The gross profit margin in Q2 2024 improved by 1.56 percentage points to 31.05%, with net profit margin reaching a historical high of 14.85% [6] Revenue Breakdown - Domestic sales amounted to 75.1 billion yuan (up 9% year-on-year) while overseas sales reached 14.8 billion yuan (up 16% year-on-year) [6] - The company’s domestic shipment decreased by 3% year-on-year, while export shipments increased by 10% year-on-year, indicating a shift towards higher-end products and improved average selling prices [6] Profitability Forecast - The company is projected to maintain a stable performance with a low valuation providing a safety cushion, with a reasonable value range of 55-60.5 yuan based on a PE ratio of 10-11 times for 2024 [6]