# Gree Electric Appliances Inc of Zhuhai (000651.SHE)

Canonical: https://gigainvestors.com/s/000651.SHE

Analysis as of: 2026-10-16T07:34:13.608Z. Financial observations: FY1996–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: CNY 39.70 per share; close as of 2026-10-15.

Estimated value: low CNY 73.51 per share, central CNY 79.73 per share, high CNY 88.00 per share. Buy at or below the central value CNY 79.73 per share. Valuation as of 2026-10-16T07:34:13.608Z; scenarios are not confidence intervals.

Expected annual return: 37.2% at the stated quote. About 37.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.10×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.18×

- FY2018: 0.16×

- FY2019: 0.15×

- FY2020: 0.15×

- FY2021: 0.14×

- FY2022: 0.14×

- FY2023: 0.16×

- FY2024: 0.20×

- FY2025: 0.18×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 30.4%

- ROIC, second-lowest year: 19.4%

- Typical minus recent gross margin: -0.5 pp

- Typical gross margin (annual median): 28.9%

- Recent gross margin (lower of latest and 3-year median): 29.4%

- Years with nonpositive capital: 5

- Capital spending / revenue: 2.5%

- ROIC including acquisitions, ten-year median: >100%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 22.7%

- FY2017: 26.2%

- FY2018: 23.1%

- FY2019: 19.4%

- FY2020: 16.0%

- FY2021: >100%

- FY2022: >100%

- FY2023: >100%

- FY2024: 56.0%

- FY2025: 34.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 142B

- Net income, five-year total: CNY 138B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.1 pp

- Working capital / revenue, change between three-year averages: -8.9 pp

- Working capital / revenue, final three-year average: -2.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.96×

- FY2023: 0.99×

- FY2024: 1.05×

- FY2025: 1.11×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 23.1% vs 56.0%

- Per-share earnings: 2.56 to 5.22 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.8%

- Ordinary dilution, 5-year annual growth: -1.3%

- Market cap gain: CNY 76B

- Cumulative retained earnings: CNY 94B

- Diluted shares, 10-year annual growth: -0.8%

- Diluted shares, 5-year annual growth: -1.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 9.3%

- Per-share value change: CNY 2.66

- Per-share value, starting three-year median: CNY 2.56

- Per-share value, ending three-year median: CNY 5.22

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 4.6%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 11B

- Cumulative net income, 10 years: CNY 249B

- ROIC, first three-year median: 23.1%

- ROIC, last three-year median: 56.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 2.56

- FY2017: CNY 3.73

- FY2018: CNY 4.35

- FY2019: CNY 4.10

- FY2020: CNY 3.72

- FY2021: CNY 4.18

- FY2022: CNY 4.43

- FY2023: CNY 5.22

- FY2024: CNY 5.83

- FY2025: CNY 5.20

### accounting: pass

- Sloan accruals: -4.4%

- Receivables to sales index (DSRI): 0.53×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.60×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.08×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.3%

- FY2017: 2.8%

- FY2018: -0.3%

- FY2019: -1.1%

- FY2020: 1.1%

- FY2021: 6.6%

- FY2022: -1.2%

- FY2023: -7.4%

- FY2024: 0.8%

- FY2025: -4.4%

## Holders

## Price story

Price needs cash profits to shrink 18.8% a year for ten years · sales -9.5%

Story as of 2026-10-16T09:59:59.689Z; price observation 2026-10-15.

Price needs cash profits to shrink 18.8% a year for ten years

### Sales · FY2024–2025

sales -9.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 108B 

- FY2017: CNY 148B 

- FY2018: CNY 198B 

- FY2019: CNY 198B 

- FY2020: CNY 168B 

- FY2021: CNY 188B 

- FY2022: CNY 189B 

- FY2023: CNY 204B 

- FY2024: CNY 189B 

- FY2025: CNY 171B 

### Gross margin · FY2025

gross margin 30.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 32.7% 

- FY2017: 32.8% 

- FY2018: 30.1% 

- FY2019: 27.5% 

- FY2020: 26.1% 

- FY2021: 24.0% 

- FY2022: 25.7% 

- FY2023: 28.4% 

- FY2024: 29.4% 

- FY2025: 30.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in furnishings, fixtures & appliances; annual sales are CNY 171.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2025: revenue 171118161275.41; grossProfit 51476808059.2; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000651.SHE: Gree Electric Appliances, Inc. of Zhuhai, together with its subsidiaries, engages in the production and sale of consumer electrical appliances and accessories in China and internationally. It operates through four segments: Consumer Electronics; Industrial Products and Green Energy; Smart Equipment; and Other Businesses. The company offers residential air conditioners; home appliances, including air purifiers, humidifiers, air coolers, electric heaters, fans, kitchen appliances, personal care equipment, refrigerators, and washing machines; and optical storage air conditioning system. It also provides industrial products, such as screw, scroll, and centrifugal chillers, as well as multi-VRF, light commercial equipment, terminals, and packaged units. In addition, the company is involved in finance; information technology research and development; transportation; wholesale and retail trade; medical devices; agriculture; real estate; electrical machinery and equipment manufacturing; and technology promotion and application services. It exports its products. The company was formerly known as Haili Air-conditioning Engineering Co., Ltd. of Zhuhai and changed its name to Gree Electric Appliances, Inc. of Zhuhai in January 1994. Gree Electric Appliances, Inc. of Zhuhai was founded in 1989 and is headquartered in Zhuhai, China.

### Why customers stay

Margins ranged from 28.4% to 30.1% during 2023–25; it earns 30.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2023: grossProfit / revenue = 28.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2024: grossProfit / revenue = 29.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2025: grossProfit / revenue = 30.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); 10-year return on capital observations [[2016,0.22680857448730035],[2017,0.26219862381175535],[2018,0.23054683264478487],[2019,0.19378432241474536],[2020,0.1596533433987882],[2021,3.1073439354324974],[2022,1.8970546036336515],[2023,1.4173445217769844],[2024,0.5602436495756274],[2025,0.34515871180083607]]; median 0.3036786678062957. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2016: growth capex 1468983026.6799998; upkeep 1807953000; owner earnings 15463626000. Growth capex / owner earnings = 0.09499602659039993.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2017: growth capex 392162990.73; upkeep 2032644000; owner earnings 22400484000. Growth capex / owner earnings = 0.017506898097826816.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2018: growth capex 728199166.56; upkeep 3109350000; owner earnings 26202788000. Growth capex / owner earnings = 0.027790904027464557.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2019: growth capex 4390225.385382652; upkeep 4708797740.584618; owner earnings 23180743259.415382. Growth capex / owner earnings = 0.00018939105343826555.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2020: growth capex 0; upkeep 4528646805.03; owner earnings 21235167194.97. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2021: growth capex 2082649800.4399996; upkeep 3644425000; owner earnings 23063069309.496. Growth capex / owner earnings = 0.09030236923333047.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2022: growth capex 169964740.1481228; upkeep 5866171575.601877; owner earnings 23581031100.26612. Growth capex / owner earnings = 0.007207689071162145.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2023: growth capex 142403302.92000008; upkeep 5283331000; owner earnings 28863986409.616. Growth capex / owner earnings = 0.004933597906370916.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2024: growth capex 0; upkeep 3299787000; owner earnings 33889249762.062. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); FY2025: growth capex 0; upkeep 1717311068.1; owner earnings 32209817369.268. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); Dividend observations: [[2016,9180067571.71],[2017,11121283724.41],[2018,862910396.59],[2019,12633034843],[2020,13140423269],[2021,16752531495],[2022,22223874812],[2023,5613841613],[2024,15097675000],[2025,18125956113.86]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 14.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000651.SHE SharesStats.PercentInsiders = 14.182 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 18.8% yearly over ten years; actual growth was 12.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:13.608Z); Ten-year compound average after fade. Initial solved rate -0.27230352506445177. Price 39.7; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.8114582841552853 → FY2025 5.774935459099332. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 22.40 per share

- 2016-11: CNY 28.47 per share

- 2016-12: CNY 24.62 per share

- 2017-01: CNY 25.78 per share

- 2017-02: CNY 27.44 per share

- 2017-03: CNY 31.70 per share

- 2017-04: CNY 33.00 per share

- 2017-05: CNY 34.08 per share

- 2017-06: CNY 41.17 per share

- 2017-07: CNY 39.24 per share

- 2017-08: CNY 38.65 per share

- 2017-09: CNY 37.90 per share

- 2017-10: CNY 42.55 per share

- 2017-11: CNY 42.45 per share

- 2017-12: CNY 43.70 per share

- 2018-01: CNY 55.94 per share

- 2018-02: CNY 51.69 per share

- 2018-03: CNY 46.90 per share

- 2018-04: CNY 44.08 per share

- 2018-05: CNY 47.50 per share

- 2018-06: CNY 47.15 per share

- 2018-07: CNY 44.17 per share

- 2018-08: CNY 38.95 per share

- 2018-09: CNY 40.20 per share

- 2018-10: CNY 38.06 per share

- 2018-11: CNY 36.85 per share

- 2018-12: CNY 35.69 per share

- 2019-01: CNY 41.75 per share

- 2019-02: CNY 44.80 per share

- 2019-03: CNY 47.21 per share

- 2019-04: CNY 56.18 per share

- 2019-05: CNY 52.31 per share

- 2019-06: CNY 55.00 per share

- 2019-07: CNY 55.09 per share

- 2019-08: CNY 55.50 per share

- 2019-09: CNY 57.30 per share

- 2019-10: CNY 58.70 per share

- 2019-11: CNY 57.71 per share

- 2019-12: CNY 65.58 per share

- 2020-01: CNY 63.96 per share

- 2020-02: CNY 59.20 per share

- 2020-03: CNY 52.36 per share

- 2020-04: CNY 54.79 per share

- 2020-05: CNY 56.76 per share

- 2020-06: CNY 56.57 per share

- 2020-07: CNY 56.91 per share

- 2020-08: CNY 54.38 per share

- 2020-09: CNY 53.26 per share

- 2020-10: CNY 58.42 per share

- 2020-11: CNY 66.64 per share

- 2020-12: CNY 61.94 per share

- 2021-01: CNY 56.30 per share

- 2021-02: CNY 59.00 per share

- 2021-03: CNY 62.70 per share

- 2021-04: CNY 59.91 per share

- 2021-05: CNY 56.30 per share

- 2021-06: CNY 52.10 per share

- 2021-07: CNY 47.50 per share

- 2021-08: CNY 41.10 per share

- 2021-09: CNY 38.75 per share

- 2021-10: CNY 36.65 per share

- 2021-11: CNY 34.56 per share

- 2021-12: CNY 37.03 per share

- 2022-01: CNY 37.83 per share

- 2022-02: CNY 36.77 per share

- 2022-03: CNY 32.30 per share

- 2022-04: CNY 31.21 per share

- 2022-05: CNY 32.17 per share

- 2022-06: CNY 33.72 per share

- 2022-07: CNY 33.26 per share

- 2022-08: CNY 31.93 per share

- 2022-09: CNY 32.43 per share

- 2022-10: CNY 28.67 per share

- 2022-11: CNY 32.17 per share

- 2022-12: CNY 32.32 per share

- 2023-01: CNY 34.63 per share

- 2023-02: CNY 35.52 per share

- 2023-03: CNY 36.75 per share

- 2023-04: CNY 39.34 per share

- 2023-05: CNY 32.98 per share

- 2023-06: CNY 36.51 per share

- 2023-07: CNY 38.76 per share

- 2023-08: CNY 35.79 per share

- 2023-09: CNY 36.30 per share

- 2023-10: CNY 33.93 per share

- 2023-11: CNY 32.95 per share

- 2023-12: CNY 32.17 per share

- 2024-01: CNY 35.25 per share

- 2024-02: CNY 39.05 per share

- 2024-03: CNY 39.31 per share

- 2024-04: CNY 42.12 per share

- 2024-05: CNY 40.70 per share

- 2024-06: CNY 39.22 per share

- 2024-07: CNY 40.02 per share

- 2024-08: CNY 39.70 per share

- 2024-09: CNY 47.94 per share

- 2024-10: CNY 43.50 per share

- 2024-11: CNY 42.08 per share

- 2024-12: CNY 45.45 per share

- 2025-01: CNY 44.89 per share

- 2025-02: CNY 40.85 per share

- 2025-03: CNY 45.46 per share

- 2025-04: CNY 45.56 per share

- 2025-05: CNY 46.42 per share

- 2025-06: CNY 44.92 per share

- 2025-07: CNY 45.62 per share

- 2025-08: CNY 42.60 per share

- 2025-09: CNY 39.72 per share

- 2025-10: CNY 39.75 per share

- 2025-11: CNY 40.36 per share

- 2025-12: CNY 40.22 per share

- 2026-01: CNY 38.70 per share

- 2026-02: CNY 37.45 per share

- 2026-03: CNY 37.82 per share

- 2026-04: CNY 40.05 per share

- 2026-05: CNY 39.17 per share

- 2026-06: CNY 37.50 per share

- 2026-07: CNY 42.30 per share

- 2026-08: CNY 38.95 per share

- 2026-09: CNY 38.28 per share

- 2026-10: CNY 39.63 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 35.93 per share, central CNY 38.71 per share, high CNY 42.42 per share

- FY2017: low CNY 55.27 per share, central CNY 71.38 per share, high CNY 80.76 per share

- FY2018: low CNY 80.23 per share, central CNY 105.58 per share, high CNY 120.34 per share

- FY2019: low CNY 82.28 per share, central CNY 107.65 per share, high CNY 122.42 per share

- FY2020: low CNY 74.46 per share, central CNY 96.19 per share, high CNY 108.84 per share

- FY2021: low CNY 70.47 per share, central CNY 76.95 per share, high CNY 85.58 per share

- FY2022: low CNY 76.05 per share, central CNY 82.48 per share, high CNY 91.03 per share

- FY2023: low CNY 78.45 per share, central CNY 85.35 per share, high CNY 94.54 per share

- FY2024: low CNY 71.25 per share, central CNY 77.77 per share, high CNY 86.45 per share

- FY2025: low CNY 72.28 per share, central CNY 78.82 per share, high CNY 87.53 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations