Midea Group(SZ:000333) Tai Ping Yang·2024-11-01 07:18Investment Rating - The report maintains a "Buy" rating for Midea Group, with a target price based on the last closing price of 72.75 [1][4]. Core Insights - Midea Group reported a revenue of 320.35 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 9.57%. The net profit attributable to shareholders was 31.70 billion yuan, up 14.37% year-on-year [2]. - In Q3 2024, the company achieved a revenue of 102.23 billion yuan, an increase of 8.08%, and a net profit of 10.89 billion yuan, reflecting a growth of 14.86% [2]. - The overseas e-commerce sales saw a significant increase, with Q3 sales growing by 50% year-on-year, and the OBM revenue from overseas markets increased by over 25% year-on-year [3]. Financial Performance Summary - For Q3 2024, the gross margin was reported at 26.04%, a decrease of 1.08 percentage points, while the net margin improved to 10.83%, an increase of 0.46 percentage points due to optimized expense ratios [4]. - The company expects net profits for 2024, 2025, and 2026 to be 38.67 billion yuan, 43.29 billion yuan, and 47.48 billion yuan respectively, with corresponding EPS of 5.06 yuan, 5.66 yuan, and 6.21 yuan [4][7]. - The projected PE ratios for the next three years are 14.12, 12.62, and 11.50 [4][7]. Business Segment Performance - The revenue from smart home, new energy and industrial technology, smart building technology, and robotics and automation for the first three quarters of 2024 were 215.4 billion yuan, 25.4 billion yuan, 22.4 billion yuan, and 20.8 billion yuan respectively, with year-on-year growth rates of 10%, 19%, 6%, and -9% [3]. - The company is focusing on enhancing its global presence and efficiency in overseas markets, with plans for a Hong Kong listing to improve its visibility in global capital markets [4].