Midea Group(SZ:000333) KAIYUAN SECURITIES·2024-03-28 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - In 2023, the company achieved operating revenue of 372.04 billion yuan (up 8.2% year-on-year) and a net profit attributable to shareholders of 33.72 billion yuan (up 14.1%) [4][12] - The performance met expectations, with steady growth in the C-end business and rapid breakthroughs in the B-end business, leading to improved profitability [4][12] - The company is optimistic about its digital transformation enhancing profitability and has raised profit forecasts for 2024-2026 [4][39] Summary by Sections 1. Business Performance - In 2023, the company’s revenue from the HVAC business was 161.1 billion yuan (up 6.95%), consumer appliances revenue was 134.7 billion yuan (up 7.51%), and robotics and automation systems revenue was 37.3 billion yuan (up 24.49%) [5][18] - The B-end business revenue share increased from 18.5% in 2020 to over 26% in 2023, with significant contributions from the new energy and industrial technology sectors [21] 2. Profitability - The gross margin for 2023 was 26.5% (up 2.2 percentage points), with the Q4 gross margin at 28.8% (up 2.2 percentage points) [6][28] - The net profit margin for 2023 was 9.1% (up 0.4 percentage points), with a Q4 net profit margin of 6.7% [34] 3. Revenue Forecasts - The company forecasts net profits of 37.44 billion yuan, 41.18 billion yuan, and 45.30 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 5.37, 5.91, and 6.50 yuan [4][39] 4. Market Position - The company holds the top market share in several categories, including home air conditioners, electric fans, and air fryers, both online and offline [24][25] - In 2023, the domestic revenue was 221.1 billion yuan (up 9.87%), while international revenue was 150.9 billion yuan (up 5.79%) [26][27]