GREE(SZ:000651) Tai Ping Yang Zheng Quan·2025-08-29 15:23Investment Rating - The report maintains a "Buy" rating for Gree Electric Appliances (000651) with a target price based on the last closing price of 47.25 [1] Core Insights - Gree Electric Appliances reported a revenue of 976.19 billion yuan for H1 2025, a decrease of 2.66% year-on-year, while the net profit attributable to shareholders was 114.12 billion yuan, an increase of 1.95% [4] - The company's Q2 2025 revenue was 559.80 billion yuan, down 12.11% year-on-year, and the net profit attributable to shareholders was 85.08 billion yuan, down 10.07% [4] - The industrial sector showed strong growth, with overseas revenue maintaining double-digit growth [5] Revenue Breakdown - For H1 2025, the revenue from various segments was as follows: Consumer Appliances 762.79 billion yuan (-5.09%), Industrial Products and Green Energy 95.91 billion yuan (+17.13%), Intelligent Equipment 3.14 billion yuan (+20.90%), Other Main Businesses 13.10 billion yuan (+16.56%), and Other Businesses 98.30 billion yuan (-0.10%) [5] - Domestic and overseas revenue for H1 2025 was 711.60 billion yuan (-5.27%) and 163.35 billion yuan (+10.19%), respectively, with overseas revenue showing a strong growth trend [5] Profitability Analysis - The gross margin for Q2 2025 was 29.33%, a decrease of 1.72 percentage points, attributed to increased competition in the air conditioning sector [6] - The net margin for Q2 2025 was 15.36%, an increase of 0.78 percentage points, due to effective control of operating expenses [6] Product and Channel Innovations - Gree's air conditioning segment showed structural highlights, with significant sales growth in new product lines such as "Wind Does Not Blow People" and "AI Dynamic Energy Saving Technology," achieving year-on-year sales increases of 131% and 360%, respectively [7] - The company launched a new retail model called "Dong Mingzhu Healthy Home," with significant sales performance in its first stores [7] Investment Recommendations - The report suggests that the domestic consumption market is recovering, which is expected to drive internal demand growth [8] - Gree aims to enhance its product matrix and maintain a high market share in central air conditioning, while also investing in its subsidiary Gree Titanium to accelerate its renewable energy business [8] - The projected net profits for Gree from 2025 to 2027 are 342.79 billion yuan, 369.42 billion yuan, and 393.10 billion yuan, respectively, with corresponding EPS of 6.12 yuan, 6.60 yuan, and 7.02 yuan [8]