GREE(SZ:000651)2024-05-06 01:02Investment Rating - The report maintains a "Buy" investment rating for Gree Electric Appliances [7][9]. Core Views - The company's performance in 2023 met expectations, with revenue reaching 204 billion yuan, a year-on-year increase of 8%, and net profit attributable to shareholders of 29 billion yuan, up 18% [7]. - The air conditioning market has shown significant recovery, with retail sales in 2023 reaching 211.7 billion yuan, a growth of 7.5% year-on-year [8]. - The company plans to distribute a cash dividend of 23.8 yuan per 10 shares, totaling 13.4 billion yuan, with a dividend payout ratio of 46% [7]. Summary by Sections Market Data - Closing price as of April 30, 2024, was 42.12 yuan, with a price-to-book ratio of 2.0 [3]. - The market capitalization of circulating A shares is 235.16 billion yuan [3]. Financial Performance - For Q4 2023, the company achieved revenue of 49.2 billion yuan, a year-on-year increase of 18%, and net profit of 8.9 billion yuan, up 44% [7]. - In Q1 2024, revenue was 36.6 billion yuan, a 3% increase year-on-year, with net profit of 4.7 billion yuan, up 14% [7]. Business Segments - The air conditioning segment generated revenue of 151.2 billion yuan in 2023, a 12% increase [8]. - The industrial products segment saw revenue of 10 billion yuan, growing by 32%, while the green energy segment achieved 7.1 billion yuan, up 51% [8]. Profitability and Cash Flow - Operating cash flow for 2023 was 56.4 billion yuan, a significant increase of 97% year-on-year [8]. - The gross profit margin improved in 2023 and Q1 2024, with year-on-year increases of 4.5 percentage points and 2 percentage points, respectively [8]. Earnings Forecast - The earnings forecast for 2024-2026 has been raised to 31.9 billion yuan, 35.1 billion yuan, and 38.6 billion yuan, respectively, with a projected growth rate of 10% annually [9][10].