GREE(SZ:000651) ZHONGTAI SECURITIES·2025-09-04 08:39Investment Rating - The investment rating for the company is "Increase" [4] Core Views - The company's performance in H1 2025 is under pressure, with a revenue of 97.6 billion (down 3%) and a net profit of 14.4 billion (up 2%) [6] - The report indicates a downward adjustment in the annual profit forecast, expecting net profit for 2025 and 2026 to be 32.1 billion and 33.6 billion respectively, with a year-on-year growth of 0% and 5% [11] Financial Performance Summary - For H1 2025, the revenue from consumer electronics, primarily air conditioners, accounted for nearly 80% of total revenue, showing a decline of 5% [7] - The industrial products and green energy segment, mainly from Shieldan and Gree Titanium, saw a revenue increase of 17% in H1 2025 [8] - The gross profit margin for H1 2025 was 29% (down 1 percentage point), with domestic sales gross margin at 34.56% [10] - The net profit margin for Q2 2025 was 15.2%, benefiting from effective measures to recover channel profits [10] Revenue and Profit Forecast - The company's revenue is projected to decline to 190.04 billion in 2024, followed by a slight recovery to 203.50 billion by 2027 [4] - The earnings per share (EPS) is expected to be 5.75 in 2024 and increase to 6.31 by 2027 [4] Market and Competitive Landscape - The report highlights that the company is facing intensified market competition, particularly in the low-end air conditioning segment, which has affected its growth [11] - The company is restructuring its sales channels to adapt to market conditions, indicating a strategic shift to enhance competitiveness [11]