Midea Group(SZ:000333) Xin Lang Cai Jing·2025-12-30 08:45Core Viewpoint - The company has announced the establishment of a new energy division, integrating its renewable energy and related businesses to enhance resource allocation efficiency and project advancement capabilities [1][2]. Group 1: Business Performance - In Q3 2025, the company's revenue reached 111.93 billion yuan, a year-on-year increase of 10.1%, although there was a slight quarter-on-quarter slowdown attributed to the reduction in national subsidies [2]. - The company's ToC (business-to-consumer) revenue in Q3 grew by 13% year-on-year, with expectations of double-digit growth for the quarter [2]. - The ToB (business-to-business) revenue in Q3 increased by 18% year-on-year, with projections for continued double-digit growth [2]. - The company's net profit attributable to shareholders in Q3 was 11.87 billion yuan, reflecting an 8.95% year-on-year growth, indicating a recovery in profitability [2]. Group 2: Cost and Cash Flow - The company's operating cash flow in Q3 was 19.79 billion yuan, a decrease of 6.99 billion yuan year-on-year, but still 1.7 times the net profit attributable to shareholders [3]. - The decline in operating cash flow was primarily due to weaker cash inflows and changes in working capital compared to the previous year [3]. - The company managed to reduce inventory by 1.6 billion yuan compared to Q2, while accounts receivable turnover days increased by 1.04 days year-on-year [3]. Group 3: Future Outlook - The company is expected to achieve stable revenue and profit growth driven by robust performance in the consumer segment and accelerated growth in the business segment, alongside brand and channel upgrades [4]. - The company’s external sales of air conditioning, refrigeration, and washing machines are anticipated to maintain high growth, supporting future double-digit growth in ToC external sales [4]. - The integration of building technology, renewable energy, commercial energy storage, and automation is projected to contribute to future growth in the ToB segment [4]. - The company has adjusted its EPS forecasts for 2025, 2026, and 2027 to 5.84, 6.44, and 7.05 yuan respectively, with a target price of 93.4 yuan based on a DCF valuation method [4].