Midea Group(SZ:000333) Guotou Securities·2024-08-20 01:08Investment Rating - The investment rating for the company is "Buy - A" with a target price of 80.85 CNY, maintaining the rating [3][7]. Core Views - The company reported a stable revenue growth of 10.3% YoY in H1 2024, with total revenue reaching 218.12 billion CNY and a net profit of 20.80 billion CNY, reflecting a 14.1% YoY increase [1]. - In Q2 2024, the company achieved a revenue of 111.64 billion CNY, marking a 10.4% YoY growth, and a net profit of 11.80 billion CNY, up 15.8% YoY, indicating strong performance in both domestic and international markets [1][2]. - The company is expected to benefit from the "replace old with new" policy in domestic sales, while international sales are anticipated to maintain high growth [1]. Financial Performance Summary - The company's Q2 gross margin slightly decreased by 0.6 percentage points YoY, while the gross margin increased by 0.5 percentage points YoY, attributed to a higher proportion of overseas brand revenue and increased online promotional activities [2]. - The Q2 net profit margin was 10.6%, up 0.5 percentage points YoY, driven by increased other income, investment income, and fair value changes [2]. - Operating cash flow for Q2 2024 was 19.56 billion CNY, showing a slight decrease compared to the previous year, but remained robust despite a high base from the previous year [2][9]. Financial Forecasts - The company is projected to achieve revenues of 373.71 billion CNY in 2023, 407.47 billion CNY in 2024, and 437.54 billion CNY in 2025, with net profits expected to reach 33.72 billion CNY, 37.68 billion CNY, and 41.28 billion CNY respectively [8][13]. - The EPS is forecasted to be 5.39 CNY in 2024, 5.91 CNY in 2025, and 6.46 CNY in 2026, indicating a steady growth trajectory [7][8].