GREE(SZ:000651) Changjiang Securities·2024-11-12 02:59Investment Rating - The investment rating for the company is "Buy" and is maintained [3]. Core Views - The company's revenue scale is under short-term pressure, but its profitability has significantly improved. In the first three quarters of 2024, the company achieved operating revenue of 146.72 billion yuan, a year-on-year decline of 5.34%. However, the net profit attributable to shareholders reached 21.96 billion yuan, an increase of 9.30% year-on-year [3][4]. - The company has formed a matrix of multiple industrial brands, covering both consumer goods and industrial equipment, and is actively exploring market demands and expanding into potential businesses such as new energy and intelligent equipment [4]. Summary by Sections Revenue and Profitability - In Q3 2024, the company reported operating revenue of 46.94 billion yuan, a year-on-year decline of 15.84%, while the net profit attributable to shareholders was 7.83 billion yuan, an increase of 5.47% year-on-year [3][4]. - The gross profit margin for the first three quarters of 2024 improved by 0.97 percentage points, while the sales expense ratio decreased by 1.64 percentage points [3]. Market Performance - The company's air conditioning sales saw a significant boost due to the old-for-new policy implemented in September 2024, with online and offline sales increasing by 88.5% and 78.9% respectively in September [4]. - Despite a 28.9% year-on-year decline in air conditioning shipments in September, the company expects a recovery in domestic sales volume in Q4 2024 as channel inventory is reduced [4]. Financial Projections - The company forecasts net profits attributable to shareholders of 31.44 billion, 34.20 billion, and 37.11 billion yuan for 2024, 2025, and 2026 respectively, corresponding to P/E ratios of 7.9, 7.2, and 6.7 times [4].