GREE(SZ:000651) China Post Securities·2024-09-02 12:00Investment Rating - The report maintains a "Buy" rating for the company, expecting it to benefit from the increasing demand in the air conditioning sector [7]. Core Views - The company has shown steady growth in its main air conditioning business, with a revenue of 100.3 billion yuan in H1 2024, reflecting a year-on-year increase of 0.50%, and a net profit of 14.1 billion yuan, up 11.54% year-on-year [4]. - The internal sales have grown steadily, with domestic sales reaching 75.1 billion yuan, a 9.01% increase, while external sales accelerated to 14.8 billion yuan, a 15.64% increase [5]. - The overall gross margin and net margin for H1 2024 were 30.47% and 13.92%, respectively, both showing improvements year-on-year due to business structure optimization and product line upgrades [6]. Financial Performance - The company is projected to achieve a net profit of 32.3 billion yuan in 2024, with corresponding P/E ratios of 7, 6, and 6 for the years 2024, 2025, and 2026, respectively [7]. - Revenue forecasts for the upcoming years are as follows: 209.76 billion yuan in 2024, 225.29 billion yuan in 2025, and 239.34 billion yuan in 2026, with growth rates of 2.31%, 7.41%, and 6.24% respectively [9]. - The company's earnings per share (EPS) are expected to increase from 5.74 yuan in 2024 to 6.96 yuan in 2026 [10].