GREE(SZ:000651) Guoxin Securities·2024-05-06 01:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][5][13] Core Views - The company's profitability continues to improve, with a dividend yield close to 6% in 2023. The company achieved revenue of 205.02 billion (+7.8%) and a net profit of 29.02 billion (+18.4%) in 2023. The Q4 revenue was 49.21 billion (+17.7%) and net profit was 8.93 billion (+43.9%) [3][4] - The air conditioning industry is experiencing high demand, with Gree's air conditioning revenue growing by 12%. In 2023, China's air conditioning sales increased by 11.2%, with domestic sales up by 13.8% and exports by 7.8% [3][4] - Emerging businesses are showing significant growth, with industrial products revenue increasing by 31.6% to 10 billion and green energy revenue up by 51.2% to 7.1 billion [3][4] - The gross margin continues to improve, with a 4.5 percentage point increase to 30.6% in 2023. The net profit margin also increased by 1.3 percentage points to 14.2% [3][4] Financial Forecasts and Metrics - Revenue projections for 2024-2026 are 221.29 billion, 231.39 billion, and 242.10 billion respectively, with year-on-year growth rates of 7.9%, 4.6%, and 4.6% [3][4] - Net profit forecasts for the same period are 32.33 billion, 34.65 billion, and 36.81 billion, reflecting year-on-year growth rates of 11%, 7%, and 6% [3][4] - The company maintains a strong position in the air conditioning sector, with a projected PE ratio of 7 for 2024 [3][4]