Gree Electric (000651) Popular Stock Analysis: Driving Factors and Outlook

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

1. Financial Performance
   : Net profit attributable to shareholders was 21.461 billion yuan in the first three quarters of 2025, operating cash flow increased by 129.24% year-on-year to 17.4 billion yuan, and gross profit margin remained at a healthy level of 28.8% [3][0];
2. High Dividend Attractiveness
   : Dividend yield reached 7.43%, significantly higher than the industry average of 3.53%, with an annual dividend of 3.00 yuan. The continuous dividend policy attracts value investors [1][0];
3. Analysts’ Optimistic Expectations
   : 21 institutions gave buy ratings, with an average target price of 48.215 yuan, implying an upside potential of 20.18% [2];
4. Industry Policy Support
   : The home appliance industry benefits from the trade-in policy and the reversal of real estate policies, and the white goods sector has sufficient long-term resilience [0].

• Valuation Advantage
  : The company’s P/E ratio is 7.02 and P/B ratio is 1.55, which are in the historical low range, with room for valuation repair [0];
• Diversification Layout
  : The expansion into smart home and new energy fields provides support for long-term growth, and ROE of 23.4% indicates stable profitability [1][0];
• Cash Flow Resilience
  : Although revenue decreased by 6% year-on-year, the significant growth in cash flow reflects the improvement in the company’s operational efficiency [3].

• Revenue Pressure
  : Revenue decreased by 6% year-on-year in the first three quarters of 2025, facing short-term growth challenges [3];
• Industry Competition
  : The home appliance industry has fierce homogeneous competition, requiring continuous innovation to maintain market share [0].

• Policy Dividends
  : The trade-in policy and the loosening of real estate policies provide opportunities for the release of home appliance demand [0];
• New Business Growth
  : The smart home ecosystem and new energy layout are expected to become the second growth curve [1];
• Valuation Repair
  : The current stock price is lower than analysts’ target prices, presenting opportunities for valuation repair [2].

Gree Electric (000651) shows the characteristics of “coexistence of short-term pressure and long-term potential”: in the short term, it is necessary to pay attention to the downward trend of revenue; in the long term, it benefits from high dividends, policy support, and diversified layout. The company’s financial indicators are stable, cash flow is sufficient, and analysts generally are optimistic about its future performance [0][2].