Midea Group(SZ:000333) Guotou Securities·2024-04-30 03:00Investment Rating - The report maintains a "Buy-A" investment rating for Midea Group, with a target price of 81.45 CNY over the next six months, corresponding to a dynamic P/E ratio of 15 times for 2024 [2][4]. Core Insights - Midea Group reported a revenue of 106.48 billion CNY in Q1 2024, representing a year-over-year increase of 10.2%. The net profit attributable to shareholders was 9.0 billion CNY, up 11.9% YoY, while the net profit excluding non-recurring items reached 9.24 billion CNY, marking a 20.4% increase YoY [1][2]. - The company's gross margin improved significantly, with a Q1 gross margin increase of 3.2 percentage points YoY, attributed to enhanced product mix and a higher proportion of overseas brand revenue [1]. - Operating cash flow for Q1 2024 was 13.93 billion CNY, reflecting a substantial increase of 46.6% YoY, indicating strong operational momentum [2]. Financial Performance Summary - Midea Group's main revenue for 2022 was 345.71 billion CNY, with projections of 373.71 billion CNY for 2023 and 405.92 billion CNY for 2024, indicating a steady growth trajectory [3][10]. - The net profit for 2022 was 29.55 billion CNY, expected to rise to 33.72 billion CNY in 2023 and 37.87 billion CNY in 2024 [3][10]. - The earnings per share (EPS) are projected to be 5.43 CNY for 2024, 6.02 CNY for 2025, and 6.50 CNY for 2026, reflecting a positive outlook for profitability [2][3]. Operational Metrics - The company's contract liabilities at the end of Q1 2024 stood at 37.56 billion CNY, a 32.2% increase YoY, indicating robust demand and future revenue potential [2]. - Midea's financial metrics show a net profit margin of 8.5% in Q1 2024, with a slight increase of 0.1 percentage points YoY, despite challenges from financial expenses and investment income [1][2].