Midea Group(SZ:000333) Zhi Tong Cai Jing·2025-08-06 04:49Core Viewpoint - Midea Group is demonstrating strong commitment to shareholder returns through significant share buybacks and high dividend payouts, reflecting management's confidence in the company's long-term intrinsic value [1][2][3]. Share Buyback and Capital Management - On July 31, Midea Group announced a share buyback of approximately 300 million yuan, acquiring 4.27 million A-shares, contributing to a total buyback expenditure of over 3.6 billion yuan for 50 million shares this year, ranking among the top three A-share companies in terms of buyback volume [1][3]. - The company plans to use over 70% of the buyback funds for share cancellation, which is expected to enhance earnings per share and is a common method of market capitalization management [1][3]. Dividend Policy and Shareholder Returns - Midea Group has a strong history of shareholder returns, having distributed a total of 1,342 billion yuan in cash dividends since its listing in 2013, with a notable dividend of 35 yuan per 10 shares for the 2024 fiscal year, representing 69.31% of the net profit [3][4]. - The company has committed to a dividend payout ratio of no less than 60% for the years 2025-2027, with a current dividend yield close to 5%, indicating a comprehensive return rate that could exceed 7% when combined with potential buyback returns [4]. Financial Performance and Growth Potential - Midea Group reported a 20.5% year-on-year increase in revenue for Q1, reaching 127.84 billion yuan, and a 38% increase in net profit attributable to shareholders, amounting to 12.42 billion yuan, surpassing market expectations [5][6]. - The company is successfully transitioning towards B2B solutions, with significant revenue growth in sectors such as new energy and industrial technology, which saw a 45% increase, and smart buildings, which grew by 20% [5][6]. International Expansion - Midea Group is enhancing its international presence, having recently launched its first overseas automotive parts factory in Mexico and completed the acquisition of Spain's Teka Group, further solidifying its global footprint [6]. - The company operates 23 overseas production bases in countries like Brazil and Egypt, which are expected to provide continuous growth momentum for its global expansion strategy [6]. Market Outlook - With the upcoming mid-year report expected to reflect strong performance, Midea Group's combination of growth and dividend attributes positions it as a unique investment opportunity in the current market environment [7].