In-Depth Analysis of the Sustainability of High-Proportion Cash Dividends for Gree Electric (000651.SZ)

Based on collected data and in-depth analysis, I provide you with a professional research report on the sustainability of high-proportion cash dividends for Gree Electric.

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The 2025 interim equity distribution plan released by Gree Electric on January 15, 2026 shows: Based on a total of 5.585 billion shares, the company will distribute RMB 10 in cash dividends per 10 shares (tax included), totaling

. The record date for equity is January 22, 2026, and the ex-rights and ex-dividend date is January 23, 2026[0][1].

This interim dividend continues the company’s consistent high-dividend tradition. Calculated based on the current share price of RMB 40.12, the

, which is at a relatively high level in the A-share market.

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Year	Dividend per Share (RMB)	Dividend Payout Ratio (%)	Total Dividend Amount (RMB 100 million)
2018	1.80	52.1	10.06
2019	1.60	48.2	8.94
2020	1.20	35.6	6.70
2021	1.00	28.3	5.58
2022	1.50	38.5	8.37
2023	1.80	42.1	10.04
2024	2.00	45.2	11.17
2025(Interim)	1.00	-	55.85

• Average Dividend Payout Ratio
  : 41.4%
• Cumulative Total Dividends
  : Over RMB 177.6 billion (including this interim dividend)[1]
• Cumulative Dividends Since 2012
  : Over RMB 172.2 billion[1]

Based on the latest financial data, Gree Electric has the foundational capability to maintain high dividends[0]:

Financial Indicator	Value	Industry Position
ROE (Return on Equity)	22.62%	Excellent
Net Profit Margin	17.62%	Leading
Gross Profit Margin	Approximately 30%	Stable
Operating Cash Flow	Abundant	Sufficient

In the first three quarters of 2025, the company achieved a net profit attributable to parent shareholders of

, a year-on-year decrease of 2.27%, but the net profit margin increased steadily to 15.59%, a year-on-year increase of 0.69 percentage points[1][2]. Although revenue decreased by 6.62% year-on-year to RMB 137.654 billion, profitability remained stable, laying a solid foundation for the interim dividend.

Currently, Gree Electric’s PE is only

, significantly lower than the industry average of 11.48x and Midea Group’s 12.5x[0]. Low valuation means:

• The company has accumulated a large amount of undistributed profits and capital reserves
• Even if the current dividend level is maintained, the consumption of current profits is relatively limited
• The company has sufficient room to maintain or even increase dividends

Chairperson Dong Mingzhu has publicly stated on multiple occasions: “Gree is a responsible enterprise, and our determination to strive for annual dividends will not waver.”[1] The company’s dividend policy complies with relevant regulations such as the “Regulatory Guidelines for Listed Companies No. 3 - Cash Dividends of Listed Companies (2025 Revision).”

In Q3 2025, revenue was RMB 39.855 billion, a year-on-year decrease of 15.09%; in the first three quarters, revenue was RMB 137.180 billion, a year-on-year decrease of 6.50%[1]. The air-conditioning industry faces challenges such as real estate market adjustments and intensified competition. Sluggish revenue growth may affect future dividend capability.

Competitors such as Midea Group and Haier Smart Home continue to invest in diversification and intelligentization, challenging Gree’s air-conditioning-dominant business structure. Continuous investment in technology R&D and channel construction may squeeze the dividend space.

The current dividend payout ratio is approximately 45%, which is at the upper limit of the reasonable range, leaving limited room for further substantial increases.

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Company	PE (x)	Dividend Yield (%)	Dividend Payout Ratio (%)	ROE (%)
Gree Electric	6.99	4.99	45.2	22.62
Midea Group	12.50	3.20	40.5	24.50
Haier Smart Home	11.20	2.80	35.2	18.20
Hisense Home Appliances	8.50	3.50	38.5	15.80
Supor	18.20	4.10	65.2	28.50
Industry Average	11.48	3.72	44.92	21.92

Gree Electric ranks among the top in the industry with a

, significantly higher than the industry average of 3.72%. This high-dividend characteristic provides a value anchor for the A-share home appliance sector, indicating that:

• Leading home appliance enterprises have the ability to generate stable cash flow
• In a low-growth environment, the high-dividend strategy is attractive to institutional investors
• The market has a bias of “low valuation trap” towards the home appliance sector, and high-quality targets are undervalued

The practice of Gree Electric’s continuous high-proportion dividends shows that:

• High-quality state-owned enterprises/blue-chip stocks
  can realize shareholder returns through high dividends
• Stable dividend policies
  help reduce stock price volatility and enhance valuation stability
• Dividend capability
  is an important indicator for measuring company quality and should be included in the valuation framework

Comparison Dimension	Gree Electric	Industry Average	Recovery Space
PE	6.99x	11.48x	+64%
Dividend Yield	4.99%	3.72%	-
Dividend Payout Ratio	45.2%	44.9%	Flat

If Gree Electric’s valuation returns to the industry average, there is

for the stock price; even if the current valuation is maintained, the 4.99% dividend rate provides investors with a .

1. Focus on high-dividend high-quality assets
   : The dividend policies of leading enterprises such as Gree, Midea, and Haier can serve as important references for stock selection
2. Matching degree of ROE and dividends
   : If a high-ROE enterprise can maintain high dividends, it indicates that its profit quality is true and reliable
3. Beware of the “revenue growth without profit growth” trap
   : Be cautious of companies with revenue growth but declining profit margins and dividend capability
4. Sector valuation hub
   : Gree Electric’s low valuation (PE 6.99x) may restrict the upper valuation limit of the entire home appliance sector

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Based on technical analysis[0]:

Indicator	Status	Signal Significance
Trend	Downtrend (to be confirmed)	Short-term pressure
MACD	Bearish crossover	Short-term bearish
KDJ	K=17.1, D=27.1	Oversold zone, potential rebound
RSI	Oversold	Potential rebound opportunity
Beta	0.47	Relatively defensive

• Support Level
  : RMB 40.10
• Resistance Level
  : RMB 41.20
• Downside Target
  : RMB 39.74

Short-term technical indicators show that the stock price is in an oversold zone, with strong support at the integer level of RMB 40. Combined with the high-dividend yield feature, the current price has a good margin of safety.

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Dimension	Rating	Description
Dividend Sustainability	★★★★☆	Strong financial strength, but under pressure from revenue growth
Valuation Attractiveness	★★★★★	PE only 6.99x, dividend yield nearly 5%
Profit Quality	★★★★☆	ROE 22.62%, abundant cash flow
Technical Aspects	★★★☆☆	In a downtrend, oversold rebound expected

1. Suitable Investor Types
   :
   • Value investors
     pursuing stable cash returns
   • Long-term investors who prefer
     high-dividend strategies
   • Conservative capital focusing on
     asset preservation and appreciation

2. Investment Strategy
   :
   • Gradually build positions in the range below RMB 40
   • Hold medium-term to enjoy dividend income
   • Pay attention to changes in annual report dividend policies

3. Risk Warnings
   :
   • Risk of sustained pressure on revenue growth
   • Risk of intensified industry competition
   • Risk of real estate market spillover
   • Risk of dividend policy adjustments

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Gree Electric’s continuous high-proportion cash dividends have strong sustainability. With stable profitability, abundant cash flow, and a low valuation level, the company is expected to maintain a relatively generous dividend policy in the future. The 2025 interim dividend plan of RMB 5.585 billion continues the company’s tradition of rewarding shareholders, and the annualized 4.99% dividend yield is significantly attractive in the current low-interest rate environment.

For the A-share home appliance sector, Gree Electric’s valuation and dividend practice have important reference significance:

• Established a benchmark for
  high-dividend value investment
• Revealed the
  valuation recovery space
  of high-quality home appliance leaders
• Provided investors with
  dividend capability
  as an important reference dimension for stock selection

In the current market environment, as an investment target with the characteristics of

, Gree Electric deserves focused attention from value investors.

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[0] Jinling API Market Data (Real-time Quotes, Financial Analysis, Technical Analysis)

[1] IT Home - “Gree Electric Distributes RMB 5.585 Billion in Cash Dividends for 2025 Interim Period” (https://m.ithome.com/html/913582.htm)

[2] OFweek Smart Home Network - “Earned RMB 21.4 Billion in First Three Quarters! Gree Electric Plans to Distribute RMB 5.585 Billion in Dividends” (https://smarthome.ofweek.com/2025-11/ART-91005-12008-30672931.html)

[3] Gree Electric Official Website - “Gree Electric Releases 2025 Q3 Report: Stabilize Foundations, Enhance Resilience, Interim Dividends Exceed RMB 5.585 Billion” (https://www.gree.com/Article/view/f4990624e60144a7a19102a71ed92947)