Midea Group(000333) 光大证券·2024-11-04 00:46Investment Rating - The report maintains a "Buy" rating for Midea Group (000333 SZ) with a current price of 72 25 RMB [2] Core Views - Midea Group's 2024 Q1-Q3 revenue reached 3203 billion RMB, a YoY increase of 10%, with net profit attributable to the parent company at 317 billion RMB, up 14% YoY [3] - In Q3 2024, the company achieved revenue of 1022 billion RMB (YoY +8%) and net profit attributable to the parent company of 109 billion RMB (YoY +15%) [3] - The company's C-end business performed well in overseas markets, while the B-end business continued to expand, with B-end/C-end revenues increasing by 10%/5% YoY respectively in 2024 Q1-Q3 [5] - The net profit margin showed steady growth, with a 9 9% net profit margin in 2024 Q1-Q3, up 0 4 percentage points YoY [5] - The company's operating cash flow reached 603 billion RMB in 2024 Q1-Q3, a 35% YoY increase, indicating improving operational quality [5] Business Performance - In the home appliance sector, Midea's air conditioner sales in Q3 2024 saw a 27% YoY increase in exports, while domestic sales remained flat due to a high base and weak consumer demand [5] - The B-end business, including new energy and industrial technology, intelligent building technology, and robotics and automation, contributed 686 billion RMB in revenue in 2024 Q1-Q3, with new energy and industrial technology growing 19% YoY [5] - The company's gross margin in 2024 Q1-Q3 was 26 8%, up 0 9 percentage points YoY, driven by the rapid growth of overseas self-owned brands and economies of scale in B-end businesses [5] Financial Metrics - The company's total market capitalization is 5531 22 billion RMB, with a total share capital of 7 656 billion shares [2][9] - The company's EPS is expected to grow from 5 08 RMB in 2024 to 6 42 RMB in 2026, with a projected ROE of 21 56% in 2024, increasing to 21 91% by 2026 [9] - The company's P/E ratio is forecasted to decrease from 14 in 2024 to 11 in 2026, indicating potential undervaluation [9] Strategic Outlook - Midea Group's long-term growth is supported by its leading market position, efficiency optimization, and channel transformation, with internationalization and diversification strategies ensuring future growth [5] - The report raises the company's net profit forecast for 2024-2026 to 38 9 billion RMB, 43 6 billion RMB, and 49 2 billion RMB, respectively, reflecting confidence in the company's growth trajectory [5]