GREE(SZ:000651) Guotou Securities·2024-04-29 05:00Investment Rating - The investment rating for Gree Electric Appliances is maintained at "Buy-A" with a target price of 54.73 CNY for the next six months [2][4]. Core Views - Gree Electric Appliances has launched a significant "trade-in" program with a budget of 3 billion CNY to stimulate demand for air conditioning units, which is expected to enhance sales performance [1]. - The subsidy amounts for the trade-in program have increased compared to previous years, with Gree brand air conditioners receiving subsidies ranging from 240 to 1000 CNY, and non-Gree brand air conditioners receiving 220 to 800 CNY [1]. - The program aims to accelerate the replacement of old air conditioning units, potentially increasing Gree's market share as non-Gree users may switch to Gree products [1]. Financial Summary - The projected revenue for Gree Electric Appliances is expected to grow from 1901.5 billion CNY in 2022 to 2211.2 billion CNY in 2024, and further to 2352.2 billion CNY in 2025 [3][11]. - Net profit is forecasted to increase from 245.1 billion CNY in 2023 to 290.6 billion CNY in 2024, reaching 334.2 billion CNY in 2025 [3][11]. - Earnings per share (EPS) are projected to rise from 5.16 CNY in 2023 to 5.94 CNY in 2025 [2][3]. - The price-to-earnings (PE) ratio is expected to decrease from 7.7 in 2023 to 6.7 in 2025, indicating a potentially attractive valuation [7][11]. Market Position and Strategy - Gree Electric Appliances is focusing on building a robust new retail system, enhancing both online and offline business operations, which is anticipated to improve operational efficiency and retail capabilities [2]. - The company is continuously optimizing its governance and operational strategies to adapt to market changes [2].