Investment Rating - The report maintains an "Accumulate" rating for Gree Electric Appliances [3] Core Views - The company's performance is expected to face short-term pressure, with a projected decline in revenue and net profit for 2025, followed by a slight recovery in 2026 and 2027 [9][10] - The company has introduced a competitively priced air conditioner to regain market share, indicating a potential improvement in market fundamentals [9] - The current valuation is at 7X, with a projected dividend yield of 5-7%, suggesting a favorable investment opportunity [9] Financial Summary - Revenue for 2023 is projected at 205,018 million, with a year-over-year growth rate of 8%. However, revenue is expected to decline by 7% in 2024 and 2025, before recovering slightly in subsequent years [3] - Net profit for 2023 is estimated at 29,017 million, with an 18% growth rate, but is expected to decrease by 7% in 2025 [3] - Earnings per share (EPS) is projected to be 5.18 in 2023, decreasing to 5.36 in 2025, before gradually increasing again [3] - The company's return on equity (ROE) is expected to decline from 25% in 2023 to 18% by 2027 [3] Market Performance - In Q3, the company reported a revenue of 40 billion, down 15% year-over-year, and a net profit of 7.05 billion, down 10% [5] - The overall sales volume has slowed, with a decline in both domestic and international sales, particularly in exports [6] - The company's contract liabilities and other current liabilities have shown a stable increase of 2-3% year-over-year, indicating a steady financial position despite declining sales [7]