Midea Group(SZ:000333) Tianfeng Securities·2025-04-30 13:13Investment Rating - The investment rating for Midea Group is "Buy" with a target price not specified [6][3]. Core Views - Midea Group's revenue performance significantly exceeded expectations, with a reported revenue of 127.84 billion yuan in Q1 2025, representing a year-on-year increase of 20.49%. The net profit attributable to shareholders was 12.42 billion yuan, up 38.02% year-on-year [1][2]. - The growth was driven by strong exports in home appliances and positive trends in the ToB (business-to-business) segment, with notable increases in revenue from new energy and industrial technology, smart building technology, and robotics and automation [1][2]. - The gross profit margin for Q1 2025 was 25.4%, a decrease of 1.1 percentage points year-on-year, but the net profit margin improved to 9.7%, an increase of 1.2 percentage points year-on-year [2]. - Midea Group's cash flow from operating activities showed steady improvement, with a net cash flow of 14.3 billion yuan in Q1 2025, up 2.8% year-on-year [2]. Financial Data and Valuation - Revenue projections for Midea Group are as follows: 373.71 billion yuan in 2023, 409.08 billion yuan in 2024, and 442.75 billion yuan in 2025, with growth rates of 8.10%, 9.47%, and 8.23% respectively [4][11]. - The net profit attributable to shareholders is expected to reach 33.72 billion yuan in 2023, 38.54 billion yuan in 2024, and 43.58 billion yuan in 2025, with growth rates of 14.10%, 14.29%, and 13.07% respectively [4][11]. - The earnings per share (EPS) are projected to be 4.40 yuan in 2023, increasing to 5.03 yuan in 2024 and 5.69 yuan in 2025 [4][11]. - The price-to-earnings (P/E) ratio is expected to be 16.73 in 2023, decreasing to 14.64 in 2024 and 12.95 in 2025 [4][11].