Midea Group(SZ:000333) KAIYUAN SECURITIES·2025-05-03 00:23Investment Rating - The investment rating for Midea Group is maintained as "Buy" [1][2] Core Views - In Q1 2025, Midea Group achieved revenue of 127.84 billion yuan, a year-on-year increase of 20.6%, and a net profit attributable to shareholders of 12.42 billion yuan, up 38.0% [2] - The company announced a new share repurchase plan of 1.5 to 3 billion yuan, reflecting confidence in its development [2] - The B-end business is experiencing rapid growth, while the C-end exports are showing high demand with limited tariff disruptions [2] - The profit forecast for 2025-2027 has been adjusted, with expected net profits of 43.50 billion, 47.00 billion, and 51.03 billion yuan respectively, corresponding to EPS of 5.68, 6.13, and 6.66 yuan [2] Financial Performance Summary - In Q1 2025, the gross margin was 25.4%, with a net profit margin of 10.0%, reflecting a year-on-year increase of 1.5 percentage points [3] - The operating cash flow net amount increased by 2.8% year-on-year, indicating improved operational efficiency [3] - The company’s revenue from commercial and industrial solutions grew by 25.3%, with significant contributions from new energy and industrial technology [2][3] Business Segments - The smart home business grew by 17.4% year-on-year, with overseas e-commerce sales increasing by over 50% [2] - The company plans to spin off its subsidiary, Ande Intelligent, for a listing on the Hong Kong Stock Exchange, aiming to enhance business management and financing channels [2] Financial Projections - Revenue projections for 2025-2027 are 441.40 billion, 472.48 billion, and 502.70 billion yuan, with corresponding net profit projections of 43.50 billion, 47.00 billion, and 51.03 billion yuan [4][9] - The expected P/E ratios for 2025, 2026, and 2027 are 13.0, 12.0, and 11.1 respectively [4][9]