GREE(000651) 海通证券·2024-05-07 08:32Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Insights - The company reported a revenue of 205.02 billion yuan in 2023, representing a year-on-year increase of 7.93%, and a net profit attributable to shareholders of 29.02 billion yuan, up 18.41% year-on-year. In Q4 2023, revenue reached 49.21 billion yuan, a 17.70% increase year-on-year, with a net profit of 8.93 billion yuan, up 43.90% year-on-year. For Q1 2024, revenue was 36.60 billion yuan, a 2.53% increase year-on-year, and net profit was 4.68 billion yuan, up 13.77% year-on-year [4][5]. Summary by Sections Financial Performance - In 2023, the company achieved a gross margin of 30.57%, an increase of 4.53 percentage points year-on-year. The net profit margin for 2023 was 14.15%, up 1.26 percentage points year-on-year. For Q4 2023, the net profit margin was 18.14%, and for Q1 2024, it was 12.78% [4][6]. - The company’s operating cash flow reached a record high of 56.4 billion yuan in 2023, which is double the net profit for the same period, indicating strong operational quality [4]. Revenue Breakdown - Revenue from air conditioning products was 151.2 billion yuan in 2023, up 12% year-on-year. Industrial products generated 10 billion yuan, up 32% year-on-year, while green energy products reached 7.1 billion yuan, up 51% year-on-year. Domestic sales accounted for 149.7 billion yuan, a 15% increase year-on-year, while exports were 24.9 billion yuan, up 7% year-on-year [4]. Future Outlook - The company plans to invest 3 billion yuan in a home appliance replacement program, which is expected to enhance brand concentration. The forecast for 2024 anticipates a net profit of 31.2 billion yuan, with a price-to-earnings (P/E) ratio of 10-11 times, suggesting a reasonable value range of 55.5-61.05 yuan per share [5][6].