Midea Group(SZ:000333) Huachuang Securities·2024-03-28 16:00Investment Rating - The investment rating for Midea Group is "Strong Buy" with a target price of 77 CNY [1]. Core Views - Midea Group achieved a total revenue of 373.71 billion CNY in 2023, representing a year-on-year increase of 8.1%, and a net profit attributable to shareholders of 33.72 billion CNY, up 14.1% year-on-year [1]. - The company has maintained high-quality growth through diversified business expansion, with significant contributions from B-end businesses such as new energy and industrial technology, smart building technology, and robotics automation [1]. - The company plans to distribute a cash dividend of 30 CNY for every 10 shares, resulting in a cash dividend ratio of 61.57% [1]. Financial Performance Summary - Total revenue for 2023 was 373.71 billion CNY, with a year-on-year growth rate of 8.1% [2]. - The net profit attributable to shareholders for 2023 was 33.72 billion CNY, with a year-on-year growth of 14.1% [2]. - The earnings per share (EPS) for 2023 was 4.84 CNY, with forecasts for 2024, 2025, and 2026 at 5.43 CNY, 5.96 CNY, and 6.54 CNY respectively [2]. - The company’s operating cash flow reached a historical high of 57.90 billion CNY in 2023, reflecting a year-on-year increase of 67.1% [1]. Business Segment Analysis - B-end business segments showed strong growth, with revenues of 27.9 billion CNY (up 29%), 25.9 billion CNY (up 14%), and 31.1 billion CNY (up 12%) from new energy and industrial technology, smart building technology, and robotics automation respectively [1]. - The C-end home appliance market remains robust, with the company maintaining a leading position in major categories, holding the highest market shares in home air conditioning at 34.5% online and 34.9% offline [1]. Regional Performance - Domestic and international sales were 221.1 billion CNY and 150.9 billion CNY respectively, with year-on-year growth rates of 9.9% and 5.8% [1]. - Overseas revenue accounted for over 40% of total revenue, with self-owned brand business revenue reaching over 40% of overseas smart home revenue [1]. Profitability and Margin Improvement - The gross profit margin for domestic and international sales improved to 26.03% and 27.16%, reflecting increases of 1.3 and 3.6 percentage points year-on-year [1]. - The sales gross margin for Q4 2023 was 28.82%, showing a year-on-year increase of 2.25 percentage points [1].