GREE(SZ:000651) Guotou Securities·2025-04-28 03:03Investment Rating - The investment rating for Gree Electric Appliances is "Buy-A" with a target price of 61.64 CNY for the next six months [5]. Core Views - Gree Electric Appliances reported a strong operational performance in Q1 2025, with a year-on-year revenue increase of 13.8% and a net profit increase of 26.3% [1][4]. - The company is expected to benefit from the ongoing "old-for-new" air conditioning subsidy policy, which is anticipated to boost sales during the peak season [2]. - Gree's profitability has significantly improved, with a net profit margin of 24.0% in Q4 2024, marking a new high since its listing [3]. Financial Performance Summary - In 2024, Gree achieved total revenue of 1900.4 billion CNY, a decrease of 7.3% year-on-year, while net profit reached 321.8 billion CNY, an increase of 10.9% [1]. - For Q4 2024, the company reported a revenue of 426.2 billion CNY, down 13.4% year-on-year, but net profit increased by 14.5% to 102.2 billion CNY [1]. - In Q1 2025, Gree's revenue was 416.4 billion CNY, up 13.8% year-on-year, with a net profit of 59.0 billion CNY, reflecting a 26.3% increase [1]. - The operating cash flow for Q1 2025 improved significantly, reaching 110.0 billion CNY, a year-on-year increase of 474.1% [4]. Profitability and Efficiency - Gree's net profit margin for Q4 2024 was 24.0%, an increase of 5.8 percentage points year-on-year, attributed to improved tax efficiency and reduced impairment losses [3]. - The management expense ratio decreased by 1.0 percentage points in Q4 2024, indicating effective cost control measures [3]. - The company has maintained stable product gross margins and marketing efficiency, with a slight decrease in gross sales difference in Q1 2025 [3]. Dividend Policy - Gree plans to distribute a cash dividend of 20 CNY per 10 shares, totaling 117.7 billion CNY, resulting in a dividend payout ratio of 52.1%, which is an increase of 6.8 percentage points year-on-year [8].