Midea Group(SZ:000333) Guoxin Securities·2025-03-31 04:46Investment Rating - The investment rating for the company is "Outperform the Market" [5][26]. Core Views - The company achieved a revenue of 409.08 billion (+9.5%) and a net profit attributable to shareholders of 38.54 billion (+14.3%) in 2024, with a significant cash dividend plan and share buyback announcement [1][3]. - The company's home appliance business showed steady growth, with B-end business performing well in Q4, and overseas growth momentum remains strong [2][3]. - The gross margin improved, and the company increased its investment in expenses, leading to steady profit improvement [3][4]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of 4090.8 billion, a 9.5% increase year-on-year, and a net profit of 385.4 billion, reflecting a 14.3% growth. The Q4 revenue was 887.3 billion (+9.1%), with a net profit of 68.4 billion (+13.9%) [1][4]. - The company plans to distribute a cash dividend of 35 yuan per 10 shares, resulting in a cash dividend rate of 69.3% and a dividend yield of 4.6% based on the closing price on March 28 [1][3]. Business Segments - The smart home segment generated 2695.3 billion in revenue (+9.4%), while B-end revenue reached 1045.0 billion (+6.9%). Notably, the revenue from new energy and industrial technology increased by 20.6% [2][3]. - The company’s domestic revenue was 2381.2 billion (+7.7%), while overseas revenue grew by 12.0% to 1690.3 billion, with OBM revenue accounting for 43% of overseas appliance revenue [2][3]. Profitability and Margins - The gross margin for 2024 increased by 0.7 percentage points to 26.8%, with the appliance segment's gross margin rising by 1.3 percentage points [3][4]. - The company’s net profit margin improved by 0.4 percentage points to 9.4%, supported by a 25.1 billion increase in investment income and fair value changes [3][4]. Future Outlook - The company has raised its profit forecast, expecting net profits of 43.1 billion, 47.0 billion, and 50.8 billion for 2025-2027, representing growth rates of 12%, 9%, and 8% respectively [3][4]. - The company aims to implement cash dividends twice a year, with a minimum of 30% of the average distributable profit allocated to cash dividends [1][3].