GREE(SZ:000651) Western Securities·2025-11-02 11:28Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The company reported a revenue of 137.18 billion yuan for Q1-Q3 2025, a year-on-year decrease of 6.5%, and a net profit attributable to shareholders of 21.46 billion yuan, down 2.3% year-on-year. In Q3 2025, the revenue was 39.86 billion yuan, a decline of 15.1% year-on-year, with a net profit of 7.05 billion yuan, down 9.9% year-on-year, which was below expectations [1][2][4] - The air conditioning business continues to face pressure, with industry data showing a decline in the company's revenue compared to the overall market performance. The company is experiencing challenges due to increased competition in the low-end market and ongoing channel adjustments [1][2] - The company maintains its long-term competitive advantages and is actively expanding its online market presence through the Jinghong brand, aiming to cover a full price range [1][2] Financial Performance - The gross profit margin for Q3 2025 decreased by 0.27 percentage points, while the profit margin attributable to shareholders increased by 1.0 percentage points to 17.7% [2] - The company announced an interim dividend of 1 yuan per share, totaling 5.59 billion yuan [2] - Revenue projections for 2025-2027 are 179.8 billion yuan, 186.1 billion yuan, and 195.6 billion yuan, with net profits of 30.91 billion yuan, 32.60 billion yuan, and 34.49 billion yuan respectively [2][9] Valuation Metrics - The projected P/E ratios for 2025-2027 are 7.3, 7.0, and 6.6 respectively, indicating a favorable valuation despite short-term disturbances [2][9] - The company’s return on equity (ROE) is projected to decline from 27.2% in 2023 to 19.1% in 2027 [9]