Midea Group(SZ:000333) EBSCN·2025-04-09 01:43Investment Rating - The report maintains a "Buy" rating for Midea Group (000333.SZ) with a current price of 67.18 CNY and a target price of 86.00 CNY [1]. Core Insights - Midea Group's 2024 annual report shows a total revenue of 409.1 billion CNY, a year-on-year increase of 9%. The net profit attributable to shareholders is 38.5 billion CNY, reflecting a 14% increase [6]. - The company plans to distribute a cash dividend of 35 CNY per 10 shares, totaling 26.7 billion CNY, which represents a cash dividend payout ratio of 69.3% [6]. - Midea Group is also planning to repurchase shares worth 5 to 10 billion CNY, with over 70% intended for cancellation to reduce registered capital [6]. Summary by Sections Financial Performance - In Q4 2024, Midea achieved revenue of 88.7 billion CNY, with a net profit of 6.8 billion CNY, marking a 14% increase year-on-year [6]. - The company's gross margin for 2024 is reported at 26.4%, with a net profit margin of 9.5%, an increase of 0.4 percentage points year-on-year [8]. Business Segments - The C-end business grew by 9%, while the B-end business saw a 7% increase. Domestic revenue rose by 8%, and overseas revenue increased by 12% [7]. - In the air conditioning segment, domestic sales remained stable, while exports grew significantly by 33% due to overseas market recovery [7]. Profitability and Cash Flow - Operating cash flow for 2024 was 60.5 billion CNY, a 5% increase from the previous year [8]. - The company maintains a strong balance sheet with cash and cash equivalents of 140.4 billion CNY at the end of 2024, up by 58.7 billion CNY from the previous year [8]. Future Outlook - Midea Group's long-term competitive advantage is supported by efficiency optimization and channel transformation, with projected net profits of 43 billion CNY in 2025, 47.5 billion CNY in 2026, and 51.8 billion CNY in 2027 [9].