Midea Group(SZ:000333) Dongguan Securities·2025-09-01 13:11Investment Rating - The investment rating for the company is "Accumulate (Maintain)" [2][6]. Core Views - The company reported a total revenue of 252.33 billion yuan for the first half of 2025, representing a year-on-year growth of 15.68%. The net profit attributable to shareholders reached 26.01 billion yuan, up 25.04% year-on-year, and the net profit after deducting non-recurring items was 26.24 billion yuan, reflecting a growth of 30% [3][6]. - The company's performance aligns with expectations, driven by a focus on core businesses and products, and a strategic approach of "promoting growth through simplification and self-disruption" [6]. Summary by Sections Financial Performance - In the first half of 2025, the smart home business generated revenue of 167.20 billion yuan, a year-on-year increase of 13.31%. The new energy and industrial technology, smart building technology, and robotics and automation systems businesses achieved revenues of 21.96 billion yuan, 19.51 billion yuan, and 15.07 billion yuan, with respective growth rates of 28.61%, 24.18%, and 8.33% [6]. - Domestic and international revenues were 143.93 billion yuan and 107.19 billion yuan, showing year-on-year growth of 14.05% and 17.7% respectively [6]. Profitability Metrics - The gross margin decreased by 1.47 percentage points to 25.62%, primarily due to rising cost rates. However, the net profit margin improved by 0.88 percentage points to 10.61%, benefiting from a reduction in expense ratios [6]. - The return on equity (ROE) for the trailing twelve months (TTM) stands at 20.24% [6]. Future Outlook - The company is focusing on humanoid robotics technology, establishing an innovation center to enhance research and development in core components, appliance robotics, and complete robot systems [6]. - The company aims to maintain its leadership in the home appliance sector by advancing its four strategic pillars: technology leadership, direct user engagement, digital intelligence, and global expansion [6]. - Earnings per share (EPS) are projected to be 5.64 yuan and 6.17 yuan for 2025 and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 13 times and 12 times [6][7].