Midea Group(SZ:000333) Ge Long Hui·2025-06-19 08:26Core Viewpoint - The emergence of the "Ten Giants" concept in China's capital market signals a potential bull market, emphasizing the importance of embracing core assets and focusing on globalization, technological barriers, and cash flow advantages [2][3]. Group 1: Globalization Capability - The domestic white goods market has limited growth potential, pushing companies to focus on overseas markets for expansion [2]. - Midea Group has strategically positioned itself in the global market, with overseas revenue exceeding $20 billion, accounting for over 40% of total revenue [3]. - The global home appliance market is valued at approximately $4 trillion, indicating significant growth opportunities for Midea, which is expected to double its global sales in the long term [3]. Group 2: B2B Transformation - The domestic home appliance market faces severe competition, necessitating a shift towards B2B models to uncover new profit growth points [4]. - Midea is leveraging technology and brand strength to enhance product value and market competitiveness, expanding into sectors like renewable energy, industrial technology, and smart logistics [4][5]. - Midea's B2B revenue surpassed 100 billion yuan for the first time in 2024, representing 25.6% of total revenue, with significant growth in sectors like renewable energy and industrial technology [7]. Group 3: Cash Flow Advantages - Midea Group maintains strong cash flow and profitability, enabling generous dividends and share buybacks, which enhance its attractiveness to investors [8]. - In 2024, Midea's dividend reached a record high of 26.7 billion yuan, with total cash distributions since its IPO amounting to 134 billion yuan [10]. - The company's share buyback plans, totaling between 6.5 billion to 13 billion yuan, reflect its commitment to providing immediate returns and long-term investment stability [10].