GREE(000651) 光大证券·2025-02-26 00:00Investment Rating - The report maintains a "Buy" rating for Gree Electric Appliances, with a target price of 54.10 CNY [6]. Core Views - The company is undergoing a structured transition with new board members, indicating a healthy generational shift in leadership. The new non-independent directors include two younger candidates, while the independent directors have strong industry backgrounds [2][3]. - The expected dividend yield for 2025 is projected at 7.1%, which is historically high, with only 25% of the time from 2013 to 2024 showing yields above 7% [3]. - Gree's absolute and relative dividend yields are at historical highs, suggesting potential for value re-evaluation [3]. Summary by Sections Board Restructuring - The board has proposed new candidates for both non-independent and independent director positions, with a focus on younger and industry-experienced individuals [2][3]. Financial Projections - Revenue and profit forecasts for Gree Electric Appliances are as follows: - Expected revenue for 2025 is 216.88 billion CNY, with a growth rate of 8.79% [5]. - Projected net profit for 2025 is 32.91 billion CNY, reflecting an 8.58% growth [5]. - Earnings per share (EPS) is expected to reach 5.88 CNY in 2025 [5]. Valuation Metrics - The price-to-earnings (P/E) ratio is projected to decrease from 9 in 2022 to 6 in 2026, indicating a potentially undervalued stock [13]. - The price-to-book (P/B) ratio is expected to decline from 2.4 in 2022 to 1.4 in 2026 [13]. Dividend and Cash Flow - The expected dividend per share for 2025 is 3.13 CNY, with a projected dividend yield of 7.6% [14]. - Operating cash flow is anticipated to be 37.90 billion CNY in 2025 [11]. Profitability and Efficiency - The return on equity (ROE) is projected to decrease from 25.3% in 2022 to 22.2% in 2026, indicating a slight decline in profitability [13]. - The gross margin is expected to improve from 26.5% in 2022 to 32.9% in 2026 [13]. Market Position - Gree Electric Appliances is positioned to benefit from a strong dividend yield and a favorable valuation compared to long-term government bond yields, suggesting a robust investment opportunity [3].