Midea Group(000333) 国信证券·2024-11-04 13:23Investment Rating - The report maintains an "Outperform" rating for Midea Group (000333 SZ) [1][3] Core Views - Midea Group demonstrated strong revenue resilience and steady profit growth in Q3 2024 [1] - The company achieved robust growth in overseas OBM business, with Q3 overseas e-commerce sales up 50% YoY [1] - Midea's home appliance business maintained stable growth, with smart home revenue reaching 2154 billion yuan in the first three quarters, up 10% YoY [1] - The company's B2B business showed mixed performance, with new energy and industrial technology revenue up 19% YoY, while robotics and automation revenue declined 9% [1] Financial Performance - Q3 2024 revenue reached 1022 3 billion yuan, up 8 1% YoY [1] - Net profit attributable to shareholders grew 14 9% YoY to 108 9 billion yuan in Q3 2024 [1] - Gross margin declined 1 1 percentage points to 26 0% in Q3, mainly due to increased overseas sales proportion and lagging effects of raw material price increases [1] - Net profit margin improved 0 6 percentage points to 10 7% in Q3 [1] Operational Highlights - Operating cash flow surged 78 5% YoY to 267 8 billion yuan in Q3 [1] - Contract liabilities increased 29 2% YoY to 375 1 billion yuan at the end of Q3 [1] - Other current liabilities (mainly sales rebates) grew 21 0% YoY to 875 9 billion yuan [1] Industry and Market Position - Midea maintained faster growth than the overall home appliance market, with Q3 domestic air conditioner sales down 9 9% while Midea achieved low single-digit growth [1] - The company's overseas expansion strategy showed strong results, with OBM revenue growing over 25% in the first three quarters [1] Future Outlook - The report raised profit forecasts for 2024-2026, expecting net profit attributable to shareholders of 386/427/466 billion yuan, representing 14%/11%/9% YoY growth [1] - The company's PE ratio is projected at 14 3/13 0/11 9 times for 2024-2026 [1] - Midea's continued overseas expansion and domestic replacement demand are expected to drive future growth [1]