Midea Group(SZ:000333) Haitong Securities·2024-08-23 01:38Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Views - The company reported a significant increase in revenue and net profit for the first half of 2024, with revenue reaching 218.12 billion yuan, up 10.28% year-on-year, and net profit attributable to shareholders at 20.80 billion yuan, up 14.11% year-on-year [5]. - The company's profitability has steadily improved, with an overall gross margin increase of 1.85 percentage points to 27.09% in the first half of 2024 [5]. - The company is expected to maintain double-digit growth in the second half of 2024, supported by the effects of the "old-for-new" policy [6]. Financial Performance Summary - For the first half of 2024, the company achieved a revenue of 218.12 billion yuan and a net profit of 20.80 billion yuan, with a significant increase in operating cash flow to 33.49 billion yuan, up 12.43% year-on-year [5]. - The gross margin for the first half of 2024 was 27.09%, with a net profit margin of 9.54%, reflecting a year-on-year increase of 0.32 percentage points [5]. - The company’s revenue from the HVAC segment was 101.46 billion yuan, with a gross margin of 26.35%, while the consumer appliances segment also saw a revenue of 75.14 billion yuan with a gross margin of 33.39% [5][6]. Regional Performance - Domestic revenue was approximately 126.2 billion yuan, up 8.37% year-on-year, while overseas revenue reached about 91.08 billion yuan, up 13.09% year-on-year [5]. - The gross margin for domestic operations increased by 1.29 percentage points to 26.15%, while the overseas gross margin improved by 2.62 percentage points to 28.40% [5]. Product Segment Analysis - The smart home segment generated revenue of 147.6 billion yuan, up 11% year-on-year, while the new energy and industrial technology segment saw a revenue increase of 26% to 17.1 billion yuan [6]. - The robotics and automation segment experienced a decline in revenue by 9% to 13.9 billion yuan, attributed to adjustments in product strategies by domestic and overseas automotive manufacturers [6]. Valuation and Future Outlook - The company is projected to achieve a net profit of 37.54 billion yuan in 2024, with a valuation range of 80.55 to 85.92 yuan based on a 15-16x PE ratio [6]. - The company is expected to maintain a steady growth trajectory, with revenue forecasts of 403.10 billion yuan for 2024, reflecting a year-on-year growth of 7.9% [7].