Midea Group(SZ:000333) Tai Ping Yang·2024-04-07 16:00Investment Rating - The report maintains a "Buy" rating for Midea Group, with a target price based on the last closing price of 64.22 [1][9]. Core Insights - Midea Group achieved a total revenue of 373.71 billion yuan in 2023, representing a year-on-year increase of 8.10%, and a net profit of 33.72 billion yuan, up 14.10% year-on-year. In Q4 2023, the company reported a revenue of 81.33 billion yuan, a 10.00% increase year-on-year, and a net profit of 6.00 billion yuan, up 18.08% year-on-year [3][5]. - The company experienced rapid growth in its new energy and industrial technology sectors in H2 2023, with revenues of 14.3 billion yuan and 15.9 billion yuan respectively, reflecting year-on-year growth of 51% and 3% [3][5]. - Midea Group's online and offline revenues for 2023 were 77.33 billion yuan and 294.71 billion yuan, respectively, with year-on-year growth of 13.7% and 6.8% [3][5]. Summary by Sections Financial Performance - In Q4 2023, Midea Group's gross margin was 28.82%, an increase of 2.25 percentage points year-on-year, while the net margin was 6.74%, a slight decrease of 0.22 percentage points year-on-year due to increased expenses [4][5]. - The company plans to distribute a cash dividend of approximately 20.76 billion yuan, representing a payout ratio of 61.57% [4][5]. Business Segments - The revenue from the HVAC and consumer appliances segments in H2 2023 was 69.1 billion yuan and 66.56 billion yuan, with year-on-year growth of 2.5% and 12.9% respectively [3][5]. - Midea Group's B2C and B2B strategies are driving growth, with retail revenue from high-end brands COLMO and TOSHIBA exceeding 20% year-on-year [5][6]. Future Projections - The report forecasts Midea Group's net profit for 2024, 2025, and 2026 to be 38.00 billion yuan, 43.12 billion yuan, and 47.80 billion yuan, respectively, with corresponding EPS of 5.45 yuan, 6.19 yuan, and 6.86 yuan [6][7].