Comprehensive Analysis of the Popularity Reasons and Market Performance of Gree Electric Appliances (000651.SZ)

Gree Electric Appliances (000651.SZ) has become a hot stock due to the combined effect of multiple factors: stable Q3 performance with a gross margin of 28.31% and net margin of 17.72%[3]; implementation of a high dividend policy of 10 shares for 20 yuan, with a dividend payout ratio of 52.06%[1]; active layout in emerging business areas such as new energy, energy storage, and intelligent manufacturing, aligning with market hotspots[0]. Institutional capital attention is high, with the margin trading and short selling balance exceeding 5 billion yuan[2], northbound funds continuing to flow in, and frequent institutional research[0]. In terms of valuation, the TTM P/E ratio is only 7.18 times, with obvious advantages[7].

In terms of industry background, the white goods industry in 2025 is in a transformation period with high competition and growth pressure[0]. Gree shows resilience with a low marketing expense ratio (industry low) and high net profit margin (industry highest)[6]. The stock price fluctuated in the range of 41.23-46.92 yuan throughout the year, with a market value of about 23-26.3 billion yuan[2]. The number of shareholders decreased by 4.85%, and the shareholding concentration increased[2].

1. Low Marketing Costs Drive High Profitability
   : Gree’s sales expense ratio is at a low level among the three major white goods giants. This advantage is closely related to the company’s brand strategy and management influence[6], supporting its industry-leading net profit margin.
2. Emerging Business Aligns with Hotspots
   : The layout of new businesses such as new energy and energy storage not only expands growth space but also gains more market attention (core themes include hot concepts like energy storage and new energy vehicles[0]).
3. Divergence Between Institutional and Retail Investor Behavior
   : The inflow of northbound funds contrasts with the decrease in the number of shareholders, reflecting institutional recognition of its long-term value, while retail shareholding is somewhat dispersed[2].

• Industry cyclical impact: The white goods industry’s growth is slowing down, and its overall performance is in the middle and lower reaches of the SW sub-industry[0]. Future performance growth may be limited by the industry environment.
• Competitive pressure: The home appliance industry is highly competitive, and new business areas face challenges from cross-industry opponents[0].

• Valuation repair potential: The current PE valuation is at a historical low[7]. If new businesses make breakthroughs, there is room for valuation repair.
• Emerging business growth: The layout in areas such as energy storage and intelligent manufacturing is expected to become new profit growth points[0].

Gree Electric Appliances (000651.SZ)'s popular performance stems from its stable fundamentals, attractive dividend policy, forward-looking business layout, and institutional capital favor. Despite facing industry cyclical challenges, its low valuation, high profitability, and emerging business potential make it have certain investment attractiveness. Investors need to pay attention to industry recovery signals and new business progress to evaluate its long-term growth prospects.