Analysis of GREE Electric (000651.SZ) Popularity Reasons and Market Impact

GREE Electric (000651.SZ) making it to the hot list is mainly due to the air conditioning industry’s ‘Aluminum-for-Copper’ self-discipline convention incident. This week at the China Home Appliance Technology Annual Conference, multiple air conditioning enterprises such as Haier, Midea, Hisense signed the self-discipline convention to jointly promote air conditioning ‘Aluminum-for-Copper’ and related standard formulation, but GREE Electric did not join the convention [1]. ‘Aluminum-for-Copper’ refers to replacing copper components in air conditioning heat exchangers with aluminum ones to reduce costs and ensure industrial chain security. As one of the world’s largest air conditioning enterprises, GREE’s decision not to join has triggered widespread market attention and industry disputes over technical routes.

From the perspective of price and trading volume, the company’s stock price rose 3.29% in the past 30 days (from $39.55 to $40.85), today (2025-12-17) it slightly dropped by 0.05%, with trading volume of 25.16M lower than the average volume of 41.48M [0]. For key price levels, the 52-week low is $39.20, high is $48.47, and the 20-day moving average is $40.54 [0].

1. Technical route divergence: GREE not joining the convention reflects different judgments within the industry on the ‘Aluminum-for-Copper’ technology; GREE may adhere to the copper component technical route, believing it has better performance.
2. Cost and competition pressure: If ‘Aluminum-for-Copper’ becomes the industry mainstream, GREE may face cost disadvantages and market share competition pressure; if copper prices continue to rise, this pressure will further amplify.
3. Valuation attractiveness: The company’s current P/E is 7.15x, far lower than the industry average, with certain valuation attractiveness, but its long-term value needs to be evaluated in combination with technical route choices and industry trends [0].

• Risk points
  : Technical route selection risk, cost disadvantage risk, competition pressure risk, market uncertainty risk [0].
• Opportunities
  : If the ‘Aluminum-for-Copper’ technology is not widely accepted by the market, GREE’s technical route may become its competitive advantage; low valuation provides potential investment opportunities for long-term investors.
• Priority
  : Need to focus on GREE’s subsequent response strategies to the ‘Aluminum-for-Copper’ trend and the progress of industry ‘Aluminum-for-Copper’ standard formulation [1].

GREE Electric became a market hot topic because it did not join the air conditioning industry’s ‘Aluminum-for-Copper’ self-discipline convention, which reflects industry divergence in technical routes. The company’s stock price has risen slightly recently but with insufficient trading volume; its valuation is lower than the industry average but faces pressure from technical route choices. Investors need to pay attention to GREE’s subsequent response strategies and the progress of industry standard formulation, and evaluate its investment value in combination with technical trends and cost changes.