Analysis of Gree Electric's Hot List Phenomenon: Market Attention Amidst Declining Performance

Gree Electric (000651.SZ) entering the hot list on November 15, 2025, deserves in-depth analysis. According to market data, this event occurred against the backdrop of the company’s relatively weak performance, forming an interesting contrast [0].

Gree Electric’s revenue in the first three quarters of 2025 was 137.18 billion yuan, down 6% year-on-year, and its net profit attributable to parent company was 21.461 billion yuan, down 2.27% year-on-year [0]. The annual stock price increase was -9.56%, underperforming the broader market. However, the company’s net profit margin rose to 15.59%, indicating improved profitability [0]. This complex situation of declining performance but improved profit efficiency may be one reason for the market’s revaluation of its value.

1. Valuation Attractiveness
   : Gree Electric’s current TTM P/E ratio is only 7.27, and its P/B ratio is 1.60, which are at low levels in the home appliance industry [0]. The average analyst target price is 48.615 yuan, representing a 21.48% upside potential compared to the current price range of 40-41 yuan [0].

2. High Dividend Yield
   : A 7.50% dividend yield is highly attractive in the current market environment, especially in a cycle of declining interest rates [0].

3. Technical Factors
   : The 14-day RSI is 45.41, indicating a neutral to weak state, with potential for a technical rebound [0]. A beta coefficient of 0.51 suggests volatility below the market average, which may attract risk-averse capital.

4. Policy Expectations
   : National home appliance subsidy policies support the industry, and the market may expect policy benefits to gradually materialize [0].

Gree Electric’s entry into the hot list reflects the market’s renewed attention to traditional value stocks. In an environment where growth stocks are overvalued, capital may shift to blue-chip stocks with stable cash flows and dividend capabilities. Despite competition from new entrants like Xiaomi, Gree Electric’s leading position in the home appliance industry remains solid [0].

This phenomenon may signal a shift in market style from growth to value. When investors are looking for undervalued high-quality targets, Gree Electric’s low valuation and high dividend characteristics make it an ideal choice.

Although Gree Electric maintains its leading position in the industry, attention needs to be paid to challenges from new competitors. The market’s revaluation of whether Gree can successfully transform and maintain its competitive advantage may also be a reason for the increased attention [0].

• Risk of sustained performance decline: If the downward trend in revenue and net profit cannot be reversed, it will affect long-term investment value
• Risk of intensified competition: New entrants like Xiaomi may further erode market share
• Industry cyclical risk: The home appliance industry is greatly affected by macroeconomics, and demand fluctuations may impact performance

• Value revaluation opportunity: The current valuation level provides a good entry point for value investors
• Policy benefit expectations: Home appliance subsidy policies may drive industry recovery
• Dividend yield advantage: High dividend yield provides investors with stable cash flow returns

Gree Electric’s entry into the hot list is the result of multiple factors. Although the company faces challenges of declining performance, its low valuation, high dividends, and potential policy support make it a market focus. The current stock price ranges from 40 to 41 yuan, and the analyst target price is 48.615 yuan, with an upside potential of about 21% [0]. Investors should pay attention to the company’s performance improvement trend, changes in the competitive landscape, and policy implementation to comprehensively evaluate its long-term investment value.

Notably, Gree Electric’s beta coefficient is only 0.51, indicating volatility below the market average, which may be suitable for investors with lower risk appetites [0]. However, the downward trend in revenue and net profit still needs close attention, as this is a key factor affecting its long-term investment value.