Midea Group(SZ:000333) EBSCN·2024-06-11 10:02Investment Rating - The report maintains a "Buy" rating for Midea Group (000333.SZ) with a current price of 65.16 CNY [1]. Core Views - Midea Group demonstrates steady operational rhythm and a firm strategic direction, with a strong market position in both domestic and international air conditioning sales [6][7]. - The company is focused on product structure upgrades and has shown significant growth in overseas sales, particularly through its own brands [6]. - Midea's diversified B-end business is progressing well, with substantial revenue contributions from various sectors including new energy and industrial technology [6][7]. Summary by Sections Market Data - Total shares: 6.975 billion - Total market value: 454.51 billion CNY - 1-year price range: 46.70 CNY to 70.10 CNY - Recent turnover rate: 26.58% [2]. Performance Metrics - Midea's revenue for 2022 was 345.71 billion CNY, with a projected increase to 403.73 billion CNY in 2024, reflecting a growth rate of 8.03% [9]. - Net profit for 2022 was 29.55 billion CNY, expected to rise to 37.56 billion CNY in 2024, indicating a growth rate of 11.38% [9]. - The company's EPS is projected to increase from 4.22 CNY in 2022 to 5.38 CNY in 2024 [9]. Business Strategy - Midea Group is committed to enhancing its product structure, with a focus on increasing average selling prices across both offline and online channels [6]. - The company aims to maintain a strong growth trajectory in overseas markets, with a significant portion of its revenue coming from its own brands [6]. - Midea's B-end business segments, including smart building technology and robotics, are expected to contribute significantly to revenue growth [6][7]. Financial Health - In Q1 2024, Midea reported a net operating cash flow of 13.9 billion CNY, a 50% year-on-year increase [6]. - The company's total assets are projected to grow from 422.56 billion CNY in 2022 to 540.34 billion CNY in 2024 [9]. - Midea's debt levels are manageable, with a total liability ratio of 64% in 2022, expected to remain stable [9]. Valuation and Forecast - The report forecasts Midea's net profit for 2024-2026 to be 37.56 billion CNY, 41.72 billion CNY, and 46.56 billion CNY respectively, with corresponding P/E ratios of 12, 11, and 10 [7][9]. - The long-term competitive advantage of Midea Group is emphasized, supported by efficiency optimization and channel transformation [7].