Midea Group(SZ:000333)2024-05-06 01:02Investment Rating - The report maintains a "Buy" investment rating for Midea Group [6] Core Views - The company's Q1 2024 performance met expectations, with a significant increase in non-recurring net profit. The revenue for Q1 2024 reached 106.1 billion, a year-on-year increase of 10%, while the net profit attributable to shareholders was 9 billion, up 12%. The non-recurring net profit grew by 20% to 9.24 billion, primarily due to a non-recurring loss of 237 million [6][7] - The overseas business is experiencing rapid growth, and the domestic white goods market remains robust. The smart home business for consumers grew by 11%, and the commercial industrial solutions business increased by 9%. The overseas e-commerce retail sales surged by approximately 60%, with sales in Brazil, Egypt, Malaysia, and the Middle East growing by 50% [6][7] - The company continues to maintain high-quality operations, with a net operating cash flow of 13.93 billion, a 50% year-on-year increase. The contract liabilities reached 37.56 billion, up 32%, indicating strong customer payment enthusiasm [7] Summary by Sections Financial Performance - Q1 2024 revenue was 106.1 billion, a 10% increase year-on-year. The net profit attributable to shareholders was 9 billion, a 12% increase, while the non-recurring net profit was 9.24 billion, a 20% increase [6][8] - The gross profit margin for Q1 2024 was 27.3%, up 3.3 percentage points year-on-year, driven by product structure upgrades and reduced raw material costs [7] Future Projections - The report forecasts net profits for 2024, 2025, and 2026 to be 37.81 billion, 41.5 billion, and 45.59 billion respectively, with year-on-year growth rates of 12.1%, 9.8%, and 9.9% [8][9] - The current PE valuation is projected at 13, 12, and 11 times for the years 2024, 2025, and 2026 respectively, indicating a clear long-term growth trajectory [6][8]