Midea Group(000333) 国联证券·2024-11-01 02:43Investment Rating - The report maintains a "Buy" rating for Midea Group (000333) [4] Core Views - Midea Group's Q3 2024 performance exceeded expectations, with strong financial statements [1] - Revenue for Q3 2024 reached RMB 101.701 billion, up 8.05% YoY, while net profit attributable to shareholders was RMB 10.895 billion, up 14.86% YoY [2] - The company's domestic sales are expected to benefit from the replacement of old appliances, while overseas sales and OBM business continue to perform well [2] - The H-share listing has been finalized, which is expected to accelerate the company's overseas expansion [2] - The dividend payout ratio is over 60%, offering a competitive dividend yield [2] Financial Performance - For Q1-Q3 2024, Midea Group achieved revenue of RMB 318.975 billion, up 9.57% YoY, and net profit attributable to shareholders of RMB 31.699 billion, up 14.37% YoY [6] - In Q3 2024, the company's gross margin decreased by 1.1 percentage points YoY, mainly due to cost pressures, price competition, and exchange rate factors [6] - The net profit margin for Q3 2024 increased by 0.6 percentage points YoY to 10.7%, supported by reduced financial expenses [6] Business Segments - In Q3 2024, C-end smart home revenue grew by 8% YoY, while B-end businesses (new energy & industrial technology, smart building technology, and robotics automation) grew by 1% YoY [6] - Air conditioner exports increased by 27% YoY in Q3 2024, driven by strong orders [6] Financial Health - Operating cash flow for Q3 2024 reached RMB 26.8 billion, up 78.5% YoY, hitting a new high [7] - Contract liabilities at the end of Q3 2024 stood at RMB 37.5 billion, up RMB 2.8 billion from Q2 2024 and RMB 8.5 billion YoY [7] Valuation and Forecast - The report forecasts 2024 and 2025 net profits of RMB 38.5 billion and RMB 42.5 billion, respectively, with P/E ratios of 14.5x and 13.1x [8] - The company's EPS for 2024 and 2025 is projected to be RMB 5.03 and RMB 5.56, respectively [8]