Midea Group(SZ:000333) BOCOM International·2025-10-30 13:11Investment Rating - The report maintains a "Buy" rating for Midea Group (000333 CH) with a target price of RMB 96.20, indicating a potential upside of 27.8% from the current closing price of RMB 75.30 [1][9]. Core Insights - Midea Group's quarterly performance exceeded expectations, with a year-on-year revenue growth of 10.1% and a net profit growth of 9.0% in Q3 2025, driven by a recovery in overseas orders and strong performance in the To B business [3][4]. - The company is expected to continue facing challenges in the domestic market due to high base effects, but overseas markets and B-end business are anticipated to support steady growth [3][4]. - The report highlights the resilience of Midea's To C business and strong performance in overseas markets, with a notable recovery in revenue growth in Q3 2025 [3][4]. Financial Overview - Revenue projections for Midea Group are as follows: RMB 373,709 million in 2023, RMB 409,084 million in 2024, RMB 455,904 million in 2025E, RMB 485,204 million in 2026E, and RMB 515,032 million in 2027E, reflecting a compound annual growth rate (CAGR) of approximately 8.1% to 11.4% [2][10]. - Net profit is projected to grow from RMB 33,745 million in 2023 to RMB 52,177 million in 2027, with a net profit margin of around 9.0% to 10.1% over the forecast period [2][10]. - The report indicates a slight adjustment in earnings forecasts for 2025, with revenue and net profit estimates slightly increased compared to previous forecasts [4][5]. Business Segment Performance - The To B business segment showed robust growth, with an estimated revenue growth exceeding 15% in Q3 2025, driven by sectors such as new energy and industrial technology [3][4]. - The overseas market demonstrated strong performance, with revenue growth rebounding to double digits in Q3 2025, supported by a recovery in external demand [3][4]. - Midea's OBM strategy has been effective, with a year-on-year revenue growth of over 20% in its proprietary brands during the first three quarters of 2025 [3][4].