Midea Group(SZ:000333) Southwest Securities·2024-10-31 14:45Investment Rating - The report maintains a "Buy" rating for Midea Group (000333) [1] Core Views - The company reported a revenue of 318.98 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 9.6%. The net profit attributable to shareholders reached 31.7 billion yuan, up 14.4% year-on-year. In Q3 alone, revenue was 101.7 billion yuan, with a year-on-year increase of 8.1%, and net profit was 10.89 billion yuan, growing 14.9% year-on-year [1][2] Summary by Sections Financial Performance - In Q3 2024, the gross margin was 26%, a slight decline of 1.1 percentage points year-on-year, attributed to rising raw material prices and intensified competition in July and August. The net profit margin improved to 10.8%, up 0.4 percentage points year-on-year [3][4] - The company’s financial expenses significantly decreased, with cash and cash equivalents at 160.88 billion yuan, an increase of 92.78 billion yuan compared to Q3 2023 [3] Revenue Growth Drivers - The "trade-in" policy has effectively stimulated domestic demand, leading to a recovery in air conditioning sales in September after a decline in July and August. The company is responding quickly to national subsidy activities in the home appliance sector [2] - The overseas OBM (Original Brand Manufacturer) strategy has shown significant results, with overseas OBM revenue growing over 25% year-on-year in the first three quarters. Q3 saw a 50% increase in overseas e-commerce sales, with Amazon's promotional events yielding over 35% growth [2] Earnings Forecast and Valuation - The report forecasts EPS for 2024, 2025, and 2026 to be 5.04 yuan, 5.55 yuan, and 6.11 yuan respectively, with corresponding valuations of 14X, 13X, and 12X [3][4]