Gree Electric (000651.SZ) Popular Stock Analysis: Driving Factors, Valuation, and Market Impact

Gree Electric (000651.SZ) recently made it to the popular list, with three core driving factors:

1. Performance
   : 2025 Q3 revenue was 137.18 billion yuan (YoY -6%), and net profit attributable to parent company was 21.461 billion yuan (YoY -2.27%) [0]. Although slightly declining, the fundamentals remain stable.
2. Market Competition
   : Xiaomi established an air conditioner factory in Wuhan with an annual capacity of 7 million units, challenging Gree’s market position; meanwhile, during the Double 11 period, Gree launched a sub-1000-yuan new product through its sub-brand Jinghong to respond to price competition [0].
3. Strategic Adjustment
   : The company continuously reduced its holdings in Wentai Technology shares, involving the Nexperia Semiconductor incident, which affected its 7-year chip-making strategy [0,5].
   In addition, the fourth batch of 69 billion yuan national subsidy funds was issued, with home appliances as the main category, and Gree actively participated in the competition for policy dividends [0,4].

• Valuation Advantage
  : Current stock price is about 40.02 yuan, PE is only 7.01x, PB is 1.53x, dividend yield is 7.5% far exceeding the industry average, with defensive attributes [0,1].
• Industry Transformation
  : The home appliance sector is shifting from price wars to technological innovation and scenario-based solutions, and Gree is adapting to market changes through a multi-brand strategy [0,3].
• Analyst Consensus
  : 21 analysts recommend buying, with an average target price of 48.615 yuan, and an upside potential of 21.48% [0,2].

• Risk Points
  : Intensified competition in the air conditioner market, uncertainty in semiconductor strategy, short-term performance fluctuations [0].
• Opportunities
  : National subsidy policy dividends, valuation repair space, high dividend returns [0,4].

Gree Electric becoming a popular stock is the result of multiple factors, including performance fluctuations, changes in competition pattern, and strategic adjustments. Despite facing short-term challenges, its low valuation, high dividend, and analyst bullish expectations are worth attention. Investors should combine their own risk preferences and pay attention to industry policies and the execution of the company’s strategy [0].