Midea Group(000333) 国盛证券·2024-09-20 06:21Investment Rating - The investment rating for Midea Group is "Buy" [3] Core Views - Midea Group's H shares debuted on September 17, 2024, closing at HKD 59.10, with a first-day increase of 7.85%. The shares were issued at a discount of 15.3% compared to the A-share closing price on September 13, 2024 [1] - The company aims to utilize the net proceeds from the H share issuance for global R&D (20%), upgrading intelligent manufacturing and supply chain management (35%), enhancing global sales networks and increasing brand sales overseas (35%), and general corporate purposes (10%) [1] - The domestic policy for replacing old appliances, which provides a subsidy of 15% of the sales price, is expected to benefit leading companies in the industry, including Midea Group, due to its strong brand and operational capabilities [1] - Midea Group is projected to achieve net profits of CNY 37.31 billion, CNY 41.27 billion, and CNY 45.59 billion for the years 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 10.7%, 10.6%, and 10.5% [1] Financial Summary - For the fiscal year 2022, Midea Group reported revenue of CNY 343.92 billion and a net profit of CNY 29.55 billion, with a year-on-year growth rate of 0.8% and 3.4%, respectively [2] - The company’s earnings per share (EPS) for 2023 is projected at CNY 4.46, with a price-to-earnings (P/E) ratio of 14.2 [2] - The forecasted revenue for 2024 is CNY 404.03 billion, with a net profit of CNY 37.31 billion, indicating a growth rate of 10.7% [2][10] - The company maintains a return on equity (ROE) of 20.7% for 2022, with a projected decrease to 18.8% in 2024 [2][9] Market Position - Midea Group is recognized as a leading player in the white goods industry, with a total market capitalization of approximately CNY 480.18 billion as of September 13, 2024 [3] - The company has a free float of 98.46% of its shares, indicating a high level of liquidity in the market [3]