Midea Group(SZ:000333) Mei Ri Jing Ji Xin Wen·2025-05-30 14:54Core Viewpoint - Midea Group's leadership expresses confidence in its ability to compete with Xiaomi in the home appliance sector, emphasizing that the industry is highly competitive and any victory will come at a significant cost [2][6][10]. Group 1: Company Strategy and Market Position - Midea Group aims to balance its home appliance business (first curve) with its ToB (business-to-business) operations (second curve) to create a seamless growth transition [10]. - The company is focused on extending the lifecycle of its home appliance business while simultaneously developing its ToB business, which is projected to exceed 100 billion yuan in revenue for 2024 [10]. - Midea's management believes that the home appliance industry has limited growth potential and is undergoing a lifecycle phase, necessitating a shift towards overseas markets and structural adjustments [10]. Group 2: Competition and Industry Dynamics - The entry of Xiaomi into the home appliance market is viewed as a significant variable, but Midea's leadership is not intimidated, stating that the competition will ultimately lead to a "war of attrition" [2][6]. - Midea's management has conducted extensive research on Xiaomi, indicating a proactive approach to understanding competitive dynamics [2]. - The company acknowledges that the home appliance sector has low entry barriers but is characterized by intense competition, making it difficult for any player to dominate [6][10]. Group 3: Overseas Market Opportunities - Midea Group sees substantial growth potential in overseas markets, with current international revenue below 200 billion yuan, indicating significant room for expansion [7][8]. - The company has established a robust regional supply chain with 23 factories globally, allowing it to adapt to changing trade policies and maintain order growth, particularly in the U.S. market [8][10]. - Midea's management anticipates that the U.S. market will not only remain stable but may also present new opportunities, especially in OEM (original equipment manufacturer) business [8]. Group 4: Financial Performance and Future Outlook - Midea's air conditioning installation volume increased by 50% year-on-year in May, reflecting strong demand and market positioning [6]. - The company plans to enhance its dividend distribution in the future, signaling confidence in its financial health and commitment to shareholder returns [10].