Midea Group(SZ:000333) Capital Securities·2025-09-25 08:57Investment Rating - The investment rating for the company is "Buy" [1][11] Core Insights - The company reported a robust revenue growth of 15.7% year-on-year, achieving an operating income of 252.3 billion yuan in the first half of 2025, with a net profit attributable to shareholders of 26 billion yuan, reflecting a 25% increase [2][5] - The company announced a mid-term profit distribution plan, proposing a cash dividend of 5 yuan per 10 shares, totaling 3.798 billion yuan [2] - The company is recognized as a global leading technology group, with steady performance in its ToC business and significant growth potential in its ToB business, driven by both domestic and international markets [5] Financial Performance Summary - Revenue Forecast: - 2024A: 409.08 billion yuan - 2025E: 454.07 billion yuan (growth of 11.0%) - 2026E: 480.76 billion yuan (growth of 5.9%) - 2027E: 513.68 billion yuan (growth of 6.8%) [2][6] - Net Profit Forecast: - 2024A: 38.54 billion yuan - 2025E: 44.39 billion yuan (growth of 15.2%) - 2026E: 48.59 billion yuan (growth of 9.5%) - 2027E: 52.65 billion yuan (growth of 8.4%) [2][6] - Earnings Per Share (EPS): - 2024: 5.03 yuan - 2025: 5.78 yuan - 2026: 6.32 yuan - 2027: 6.85 yuan [2][6] Business Segment Performance - The company's C-end business showed strong growth, with a revenue increase of 15.7% in the first half of 2025, while the B-end business performed exceptionally well [5] - The revenue from smart home products, new energy and industrial technology, smart building technology, and robotics and automation showed year-on-year growth rates of 13.3%, 28.6%, 24.2%, and 8.3% respectively [5] - The company's overseas OBM business accounted for over 45% of its smart home overseas revenue in the first half of 2025, indicating strong international market penetration [5] Profitability Analysis - The gross margin decreased by 1.5 percentage points to 25.6% due to changes in revenue structure and pricing strategies, while the net margin improved by 0.9 percentage points to 10.6% due to optimized expense ratios [5] - The company reported a significant increase in foreign exchange gains, contributing to a decline in financial expense ratios [5] Investment Recommendation - The company is expected to achieve net profits of 44.4 billion yuan, 48.6 billion yuan, and 52.7 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding price-to-earnings ratios of 13, 12, and 11 times [2][5]