Midea Group(SZ:000333) Haitong Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Insights - The company reported a total revenue of 373.7 billion yuan in 2023, representing an 8.1% year-on-year growth, and a net profit attributable to shareholders of 33.7 billion yuan, which is a 14.1% increase year-on-year [4][6] - The company plans to distribute a dividend of 3 yuan per share, resulting in a dividend payout ratio of 62%, which corresponds to a dividend yield of 4.67% based on the stock price as of March 29 [4][5] - The company has shown strong growth in its TOB (business-to-business) segment, with total revenue from this segment exceeding 26% of overall revenue, driven by robust performance in industrial technology and building technology divisions [4][5] Summary by Sections Financial Performance - In Q4 2023, the company achieved a revenue of 81.33 billion yuan, a 10% increase year-on-year, and a net profit of 6.002 billion yuan, up 18.08% year-on-year [4] - The gross margin improved by 2.25 percentage points to 26.49%, with domestic and overseas gross margins at 26.03% and 27.16%, respectively [4][6] - The company expects to achieve a net profit of 37.09 billion yuan in 2024, with a projected P/E ratio of 15-16x, leading to a fair value range of 79.8 to 85.12 yuan per share [5][6] Business Segments - The HVAC segment generated 161.1 billion yuan in revenue, a 6.95% increase, while the consumer appliances segment saw a revenue increase of 7.51% to 134.7 billion yuan [4] - The company is advancing its high-end brand strategy, with the dual high-end brand strategy of "COLMO + Toshiba" achieving over 20% growth in retail sales [4][5] Market Position - The company maintains its leading position in the home appliance sector, with its products holding the largest market share in various categories in both online and offline markets in China [4][5] - The OBM (Original Brand Manufacturer) business has seen rapid growth, contributing over 40% to overseas smart home business revenue [5]