Core Insights - The company achieved a total operating revenue of 409.1 billion yuan in 2024, a year-on-year increase of 9.5%, with a net profit attributable to shareholders of 38.5 billion yuan, up 14.3% year-on-year [1] - The company plans to distribute a cash dividend of 35 yuan per 10 shares, totaling 26.7 billion yuan, corresponding to a dividend payout ratio of 69.3% [1] - The company aims to repurchase shares worth no less than 5 billion yuan and no more than 10 billion yuan, with over 70% of the repurchased shares intended for cancellation [1] Financial Performance - In 2024, the home appliance segment generated revenue of 269.5 billion yuan, a year-on-year increase of 9.4%, while the ToB business generated revenue of 104.5 billion yuan, up 6.9% year-on-year [2] - The gross profit margin for the main business in 2024 was 26.4%, an increase of 0.7 percentage points year-on-year, with the smart home business gross margin at 30.0%, up 1.3 percentage points [3] - The net cash flow from operating activities reached 60.5 billion yuan in 2024, a year-on-year increase of 4.5% [3] Business Outlook - The company expects the domestic replacement policy to stimulate demand in the home appliance sector, with a focus on optimizing profitability through high-end brands [4] - The ToB business is showing improvement, with expectations for enhanced cross-product collaboration and profitability as the scale expands [4] - Forecasts for net profit attributable to shareholders are 42.9 billion yuan, 46.9 billion yuan, and 50.8 billion yuan for 2025 to 2027, respectively, with corresponding PE ratios of 13.7x, 12.6x, and 11.6x [4]

Investment Rating - The investment rating for Midea Group is "Buy" with a target price indicating a potential return of over 20% within the next six months [6][17]. Core Views - Midea Group is expected to achieve a total revenue of 409.1 billion yuan in 2024, representing a year-on-year growth of 9.5%, with a net profit attributable to shareholders of 38.5 billion yuan, up 14.3% year-on-year [1]. - The company plans to distribute a cash dividend of 35 yuan for every 10 shares, totaling 26.7 billion yuan, which corresponds to a dividend payout ratio of 69.3% [1]. - Midea Group has introduced a shareholder return plan for 2025-2027, committing to at least two cash dividends annually, with a minimum of 30% of the average distributable profit from the last three years allocated for cash distribution [1]. Summary by Sections Financial Performance - In 2024, Midea Group's main business gross margin is projected to be 26.4%, an increase of 0.7 percentage points year-on-year. The gross margin for smart home products is expected to rise to 30.0%, while the ToB business gross margin is anticipated to decrease to 21.4% [3]. - The net profit margin for 2024 is forecasted to be 9.4%, reflecting a year-on-year increase of 0.4 percentage points [3]. Revenue Breakdown - The home appliance business is expected to generate 269.5 billion yuan in revenue in 2024, a year-on-year increase of 9.4%. The ToB business is projected to reach 104.5 billion yuan, growing by 6.9% year-on-year [2]. - In Q4 2024, the revenue from the home appliance segment is expected to be 54.1 billion yuan, up 7% year-on-year, while the ToB segment is projected to see a revenue of 10.4 billion yuan, reflecting a 6.9% increase [2]. Cash Flow and Financial Health - Midea Group's net cash flow from operating activities is expected to be 60.5 billion yuan in 2024, an increase of 4.5% year-on-year [3]. - As of the end of 2024, the company’s other current liabilities are projected to be 90.4 billion yuan, up 27% year-on-year [3]. Future Outlook - The company anticipates a continued improvement in profitability driven by internal efficiency enhancements and AI applications [3]. - Midea Group's net profit attributable to shareholders is forecasted to reach 42.9 billion yuan in 2025, 46.9 billion yuan in 2026, and 50.8 billion yuan in 2027, with corresponding P/E ratios of 13.7x, 12.6x, and 11.6x respectively [4].