Midea Group(SZ:000333) Changjiang Securities·2025-05-07 14:45Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company achieved a revenue of 127.839 billion yuan in Q1 2025, representing a year-on-year growth of 20.49%. The net profit attributable to shareholders was 12.422 billion yuan, up 38.02% year-on-year, while the net profit excluding non-recurring items reached 12.750 billion yuan, also reflecting a 38.03% increase year-on-year [2][5]. Summary by Sections Revenue Growth - The company experienced rapid revenue growth driven by both C-end and B-end business segments. The C-end smart home revenue grew by 17.4% year-on-year, with overseas e-commerce sales increasing by over 50%. The domestic high-end brands "COLMO + Toshiba" saw sales growth exceeding 55% [11]. - The B-end business, focusing on commercial and industrial solutions, reported a revenue increase of 25.3%, with the new energy and industrial technology segment achieving a revenue of 11.1 billion yuan, up 45% year-on-year [11]. Profitability and Cost Management - The company optimized its expense ratio significantly, with a gross margin decrease of 1.13 percentage points year-on-year. The operating profit for Q1 2025 was 11.635 billion yuan, reflecting an 11.43% year-on-year growth [11]. - The net profit growth rate was notably higher than the operating profit due to favorable changes in foreign exchange gains and a significant decrease in financial expense ratio by 2.75 percentage points to -2.22% [11]. Future Outlook - The company has established a dual focus on both ToC and ToB business models, aiming for sustainable growth through diversified product offerings and services. The projected net profits for 2025, 2026, and 2027 are 42.588 billion yuan, 46.806 billion yuan, and 52.134 billion yuan, respectively, with corresponding price-to-earnings ratios of 13.35, 12.15, and 10.91 [11].