Midea Group(SZ:000333) Southwest Securities·2024-08-21 00:39Investment Rating - The report maintains a "Buy" rating for Midea Group (000333) [1][3]. Core Views - Midea Group demonstrated robust growth with a revenue of 218.12 billion yuan in H1 2024, marking a year-on-year increase of 10.3%. The net profit attributable to shareholders reached 20.8 billion yuan, up 14.1% year-on-year [2]. - The growth was primarily driven by external sales and the strong performance of the smart home segment, which remains a cornerstone of the company's revenue [2]. - The gross margin improved by 1.9 percentage points to 27.1%, reflecting a positive impact from product structure upgrades despite rising raw material costs [2]. Summary by Sections Financial Performance - In H1 2024, Midea Group's revenue was 218.12 billion yuan, with a net profit of 20.8 billion yuan, and a non-GAAP net profit of 20.18 billion yuan [2]. - For Q2 2024, revenue was 111.64 billion yuan, with a net profit of 11.8 billion yuan, indicating a year-on-year growth of 10.4% and 15.8% respectively [2]. Sales Breakdown - Domestic and international sales for H1 2024 were 126.2 billion yuan and 91.08 billion yuan, growing by 8.4% and 13.1% year-on-year [2]. - The smart home segment generated 101.46 billion yuan, with a growth rate of 11% [2]. Profitability Metrics - The gross margin for H1 2024 was 27.1%, with specific segments showing varied margins: HVAC at 26.4%, consumer electronics at 33.4%, and robotics at 24% [2]. - The net profit margin increased to 9.1%, reflecting a stable profitability trend [2]. Earnings Forecast - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 5.4 yuan, 5.94 yuan, and 6.55 yuan respectively, with corresponding price-to-earnings (PE) ratios of 12, 10, and 10 [3][4].