新股报告：美的集团

Investment Rating - The investment rating for the company is "Neutral" with a score of 66 out of 100 [1][7]. Core Insights - The company, Midea Group, is a leading global provider of smart home appliances and industrial solutions, with a significant market presence in over 200 countries and regions. It ranks as the largest home appliance manufacturer by sales and revenue, holding a market share of 7.9% in 2023 [1][3]. - The company has a strong focus on research and development, with over 33 R&D centers and more than 23,000 R&D personnel, investing over 14 billion RMB in R&D in 2023 [1][3]. - The home appliance market is projected to grow, with China, North America, and Europe accounting for over 67% of global sales in 2023. The compound annual growth rate (CAGR) for appliance sales in China is expected to be 5.2% from 2023 to 2027 [1][2]. Company Operations - Midea Group's revenue is divided into two main segments: smart home business and commercial and industrial solutions. The smart home business generated revenue of 246.35 billion RMB in 2023, accounting for 65.9% of total revenue, while the commercial and industrial solutions segment contributed 97.78 billion RMB, or 26.2% [3]. - The company has shown a steady increase in gross margin from 22.4% in 2021 to 26.3% in 2023, with the smart home business gross margin rising from 25.1% to 29.8% during the same period [3]. Valuation Level - The H-share offering price corresponds to a price-to-earnings (P/E) ratio of 9.5 to 10.0 and a price-to-book (P/B) ratio of 2.2 to 2.3, which is slightly lower than its A-share valuation and that of peers like Haier Smart Home [4]. Market Environment - The Hong Kong IPO market has seen a challenging atmosphere in 2024, with a first-day drop rate of 38.6% among new listings. Midea Group's IPO is the largest in the Hong Kong market in three years, with significant cornerstone investor participation [6][7].