Midea Group(000333) 交银国际证券·2024-11-05 01:11Investment Rating - The report maintains a "Buy" rating for Midea Group with a target price of RMB 89.90, indicating a potential upside of 23.4% from the current closing price of RMB 72.84 [1][3][4]. Core Insights - Midea Group's profit growth continues to show double-digit increases, aligning with market expectations. For the first three quarters of 2024, the company's revenue and net profit attributable to shareholders grew by 9.6% and 14.4%, reaching RMB 319 billion and RMB 31.7 billion, respectively. In Q3 alone, revenue and net profit increased by 8.1% and 14.9%, amounting to RMB 101.7 billion and RMB 10.9 billion [1][2]. - The gross margin for the first three quarters reached 26.8%, a 1 percentage point increase from the same period in 2023. This improvement, along with a reduction in expense ratios, led to an operating profit margin increase of 0.4 percentage points to 12.0% [1][2]. - The report highlights strong performance in both C-end (consumer) and B-end (business) segments, with C-end sales growing by 7% in Q3, driven by robust external sales, particularly in the OEM and OBM businesses in emerging markets [2][3]. Financial Performance Summary - For the fiscal year ending December 31, 2022, Midea Group reported revenue of RMB 345.7 billion, with a year-on-year growth of 0.7%. Projections for 2023 and 2024 estimate revenues of RMB 373.7 billion and RMB 409.3 billion, reflecting growth rates of 8.1% and 9.5%, respectively [5][9]. - Net profit for 2022 was RMB 29.8 billion, with forecasts of RMB 33.7 billion for 2023 and RMB 38.1 billion for 2024, indicating growth rates of 13.6% and 10.1% [5][9]. - The report anticipates a slight adjustment in revenue and profit expectations for 2025, with a conservative reduction of 3% and 8%, respectively, due to uncertainties surrounding policy impacts [3][5].