Gree Electric (000651.SZ): Drivers of Its Popular Stock Status and Fundamental Analysis

This analysis is based on tushare_hot_stocks popular stock data [0]. Gree Electric (000651.SZ) has seen a significant rise in market attention recently. Key driving factors include its solid financial position, consistent shareholder return policy, and growing R&D investment, while also noting short-term pressures from industry competition and policy adjustments.

Gree Electric achieved a net profit attributable to shareholders of 21.461 billion yuan in the first three quarters of 2025, a year-on-year decrease of 2.27% but in line with market expectations [0]. The company has a solid financial position with ample monetary funds, a financial expense of -3.297 billion yuan, and an asset-liability ratio of 62.80% [1]. It continues to implement a high dividend policy: in the mid-2025 period, it plans to distribute dividends of 5.585 billion yuan, with cumulative dividends of approximately 147.6 billion yuan since its listing [1]. R&D investment maintains growth: in the first three quarters, it reached 5.622 billion yuan, an increase of 269 million yuan year-on-year [0]. In addition, the company enhances its long-term competitiveness through share repurchases (cumulative repurchase of 617 million shares since 2020) and industrial diversification layout (smart equipment, communication equipment, etc.) [0].

• Coexistence of short-term pressure and long-term resilience
  : Although net profit declined slightly, the company’s cash flow and dividend-paying ability remain strong, demonstrating risk resistance [1].
• Significant advantages in cash management
  : Financial expenses remain negative, and monetary funds far exceed interest-bearing liabilities, providing solid support for shareholder returns and R&D investment [1].
• Valuation at a low level creates allocation window
  : Currently, the valuation of the white goods sector is at a historical low. As a leading company in the industry, Gree Electric has long-term allocation value [2].

• Risk Points
  : Intensified industry competition, policy adjustments, and export pressures on central air conditioners may affect short-term performance [0]; the stock price has been under pressure this year, so vigilance against market sentiment fluctuations is needed [0].
• Opportunity Window
  : The domestic sales of white goods still show resilience, and export growth is expected to recover quarter by quarter [2]; the high dividend policy and share repurchase plan enhance shareholder confidence [1].

Gree Electric has solid fundamentals, ample cash flow, and a consistent shareholder return policy. It faces short-term industry cycle pressures, but in the long run, growing R&D investment and diversified layout will support future development. Currently, the sector’s valuation is at a low level. Investors can pay attention to its long-term allocation opportunities while noting short-term market fluctuation risks.