Midea Group(SZ:000333) ZHONGTAI SECURITIES·2024-03-28 16:00Investment Rating - The investment rating for Midea Group is "Buy" (maintained) with a market price of 63.67 CNY [1]. Core Views - Midea Group's revenue for 2023 was 373.71 billion CNY, representing an 8.1% year-over-year growth, while net profit reached 33.72 billion CNY, up 14.1% [6]. - The company has a dividend payout ratio of 61.6%, corresponding to a dividend yield of 4.7% for 2023 [6]. - The company is expected to continue its growth trajectory, with revenue projections of 399.44 billion CNY for 2024 and 423.08 billion CNY for 2025, reflecting growth rates of 7% and 6% respectively [2]. Financial Performance Summary - Revenue and Profit Forecasts: - 2022A: Revenue 345.71 billion CNY, Net Profit 29.55 billion CNY - 2023A: Revenue 373.71 billion CNY, Net Profit 33.72 billion CNY - 2024E: Revenue 399.44 billion CNY, Net Profit 37.27 billion CNY - 2025E: Revenue 423.08 billion CNY, Net Profit 40.99 billion CNY - 2026E: Revenue 447.05 billion CNY, Net Profit 45.35 billion CNY [2]. - Earnings Per Share (EPS): - 2023: 4.84 CNY - 2024: 5.35 CNY - 2025: 5.88 CNY - 2026: 6.51 CNY [9]. - Cash Flow: - Operating cash flow for 2023 was 57.90 billion CNY, with a cash conversion rate of 144% [7]. Business Segment Performance - Smart Home Business: Revenue grew by 5%, with expectations of mid-single-digit growth in air conditioning and high-single-digit growth in washing machines [7]. - 2B Segment: Revenue from building solutions increased by 14%, and revenue from new energy and industrial technology grew by 29% [7]. - Domestic vs. International Sales: Domestic sales increased by 9.9%, while international sales rose by 5.8% [7]. Investment Recommendations - The report suggests that Midea Group's strong cash flow and operational efficiency will support continued growth, with upward revisions to profit forecasts for 2024 and beyond [6][7].