Midea Group(SZ:000333) Guoxin Securities·2025-03-31 10:00Investment Rating - The investment rating for Midea Group is "Outperform the Market" [5][26]. Core Views - Midea Group 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 is experiencing strong growth in overseas markets, with a notable increase in the OBM (Original Brand Manufacturer) revenue share, which reached 43% of overseas home appliance revenue [2][3]. - Midea Group's gross margin improved by 0.7 percentage points to 26.8%, with a focus on increasing overseas expenditures to support growth [3][4]. Summary by Sections Financial Performance - In 2024, Midea Group's revenue was 409.08 billion, with a year-on-year growth of 9.5%. The net profit attributable to shareholders was 38.54 billion, reflecting a 14.3% increase. The fourth quarter revenue was 88.73 billion (+9.1%), and net profit was 6.84 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%, equating to a dividend yield of 4.6% based on the closing price on March 28 [1]. Business Segments - The smart home segment generated 269.53 billion in revenue (+9.4%), while B2B revenue reached 104.5 billion (+6.9%). Notably, the new energy and industrial technology segment saw a revenue increase of 20.6% [2]. - Domestic revenue was 238.12 billion (+7.7%), while overseas revenue was 169.03 billion (+12.0%), indicating robust international growth [2]. Profitability and Margins - The gross margin for 2024 improved to 26.8%, with the home appliance segment's gross margin increasing by 1.3 percentage points. The company also reported a net profit margin increase of 0.4 percentage points to 9.4% [3][4]. - The company is increasing its investment in sales and marketing, with the sales expense ratio rising by 0.9 percentage points to 9.5% [3]. Future Outlook - Midea Group's profit forecast for 2025-2027 has been raised, with expected net profits of 43.1 billion, 47.0 billion, and 50.8 billion, representing year-on-year growth rates of 12%, 9%, and 8% respectively [3][4].