Midea Group(SZ:000333) Tai Ping Yang·2024-08-21 08:11Investment Rating - The report maintains a "Buy" rating for Midea Group, with a target price based on the last closing price of 63.02 [1][11]. Core Insights - Midea Group's performance in Q2 2024 shows rapid growth, with total revenue reaching 218.12 billion yuan, a year-on-year increase of 10.28%, and net profit attributable to shareholders at 20.80 billion yuan, up 14.11% year-on-year [4][5]. - The company experienced strong growth in its new energy and industrial technology segments, with overseas performance also showing significant improvement [4][5]. - The report highlights the company's dual high-end brands, COLMO and TOSHIBA, achieving over 20% growth in retail sales, and a robust global manufacturing and e-commerce expansion [5][4]. Revenue Summary - In H1 2024, Midea Group's revenue from smart home, new energy and industrial technology, smart building technology, and robotics and automation were 147.6 billion, 17.1 billion, 15.7 billion, and 13.9 billion yuan respectively, with year-on-year growth rates of +11%, +26%, +6%, and -9% [4]. - Domestic revenue was 126.20 billion yuan, up 8.37%, while international revenue reached 91.08 billion yuan, reflecting a 13.09% increase [4]. Profitability Summary - The gross margin for Q2 2024 was 26.88%, an increase of 0.50 percentage points year-on-year, attributed to business structure optimization and growth in overseas self-owned brands [5]. - The net profit margin for Q2 2024 was 10.89%, up 0.52 percentage points year-on-year, indicating stable profitability [5]. Financial Forecast - The report projects Midea Group's net profit attributable to shareholders for 2024-2026 to be 38.03 billion, 42.15 billion, and 46.16 billion yuan respectively, with corresponding EPS of 5.44, 6.03, and 6.61 yuan [5][8]. - The expected PE ratios for the same period are 11.57, 10.44, and 9.54 times [8].