
Investment Rating - The report maintains a "Buy" rating for Gree Electric Appliances with a target price of 54.10 CNY [5][7]. Core Insights - The expected dividend yield for 2025 exceeds 7%, indicating strong value characteristics. The current expected dividend yield is 7.7% based on a profit forecast of 33 billion CNY and a 52% cash dividend rate [2][5]. - Historical data shows that the company has had a dividend yield above 7% for approximately 31% of the time from 2013 to 2024, typically corresponding to valuation bottoms [2]. - The company has seen a resilient online retail growth, with a 21% year-on-year increase in August, compared to a 2% growth in the industry [3]. - Gree Electric is accelerating its expansion in Southeast Asia, with a significant increase in its market share from 30% to 80% in the region [4]. Summary by Sections Dividend and Profitability - The projected dividend per share for 2025 is 2.86 CNY, with a cash dividend rate of 7.2% [15]. - The company’s net profit for 2025 is estimated at 33 billion CNY, with a growth rate of 2.63% [6]. Revenue and Growth - The expected revenue for 2025 is 194.89 billion CNY, with a growth rate of 2.55% [6]. - The company’s online retail price has increased, benefiting from a reduction in the proportion of low-priced air conditioning sales [3]. Market Position and Strategy - Gree Electric has shifted its operational model in Thailand to a localized subsidiary approach, enhancing market responsiveness [4]. - The company has successfully positioned itself against Japanese brands in Indonesia, indicating strong competitive capabilities [4]. Financial Metrics - The projected earnings per share (EPS) for 2025 is 5.90 CNY, with a price-to-earnings (P/E) ratio of 7 [6][15]. - The return on equity (ROE) is expected to be 22.88% in 2025, reflecting strong profitability [14].