Midea Group(000333) 广发证券·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for Midea Group (000333 SZ) with a target price of RMB 80 33 per share based on a 15x PE multiple for 2024 [3][5] Core Views - Midea Group achieved robust revenue growth in 2023 with total revenue reaching RMB 373 71 billion (YoY +8 1%) and net profit attributable to shareholders of RMB 33 72 billion (YoY +14 1%) [2] - The company's gross margin improved to 26 8% (YoY +2 2pct) and net margin increased to 9 0% (YoY +0 5pct) [2] - In Q4 2023 revenue grew 10 0% YoY to RMB 81 33 billion with net profit up 18 1% YoY to RMB 6 00 billion [2] Business Segments - Revenue breakdown by segment in 2023 HVAC RMB 161 1 billion (YoY +7%) consumer appliances RMB 134 7 billion (YoY +8%) robotics and automation systems RMB 37 3 billion (YoY +24%) [2] - Regional revenue breakdown domestic RMB 221 1 billion (YoY +10%) overseas RMB 150 9 billion (YoY +6%) [2] - 2B business segments showed strong growth new energy and industrial technology RMB 27 9 billion (YoY +29%) smart building technology RMB 25 9 billion (YoY +14%) robotics and automation RMB 31 1 billion (YoY +12%) [2] Financial Forecasts - Revenue is expected to grow to RMB 405 32 billion in 2024 (YoY +8 5%) and RMB 437 66 billion in 2025 (YoY +8 0%) [4] - Net profit attributable to shareholders is projected to reach RMB 37 32 billion in 2024 (YoY +10 7%) and RMB 41 14 billion in 2025 (YoY +10 2%) [4] - EPS is forecasted to increase from RMB 4 93 in 2023 to RMB 5 36 in 2024 and RMB 5 90 in 2025 [4] Capital Allocation - Midea announced a 2023 dividend distribution of RMB 30 per 10 shares totaling RMB 20 76 billion with a payout ratio of 61 57% [2] - The company launched a 2024 employee stock ownership plan covering 604 participants with a total fund of RMB 1 29 billion [2] - The plan sets ROE targets of 18% for 2024-2025 and 17% 16 5% for 2026-2027 respectively [2]