Midea Group(000333) 群益证券·2024-03-27 16:00Investment Rating - The report assigns a "Buy" rating for the company, Midea Group [2][4]. Core Insights - Midea Group reported a revenue of 373.71 billion RMB for 2023, representing a year-over-year increase of 8.1%. The net profit attributable to shareholders was 33.72 billion RMB, up 14.1% year-over-year [2][4]. - The company has proposed a cash dividend of 30 RMB per 10 shares, which translates to a dividend yield of approximately 4.7% based on the previous closing price [2]. - The company's gross margin improved significantly in 2023, with an overall gross margin of 26.8%, an increase of 2.2 percentage points year-over-year, driven by a decline in raw material prices [2][3]. Summary by Sections Company Overview - Midea Group operates in the home appliance industry, with a current A-share price of 63.67 RMB as of March 27, 2024, and a target price of 76 RMB [1][2]. - The company has a market capitalization of 435.27 billion RMB and a total share count of approximately 6.97 billion shares [1]. Financial Performance - In Q4 2023, Midea Group achieved a revenue of 81.33 billion RMB, reflecting a year-over-year growth of 10.0%, with a net profit of 6.0 billion RMB, up 18.1% [2]. - The air conditioning segment generated revenue of 161.1 billion RMB, a 7.0% increase year-over-year, while the consumer electronics segment saw revenue of 134.7 billion RMB, up 7.5% [2][3]. - The robotics and automation segment experienced a robust growth of 24.5%, with revenue reaching 37.3 billion RMB [2]. Future Projections - The report forecasts net profits for 2024, 2025, and 2026 to be 39.06 billion RMB, 44.05 billion RMB, and 49.11 billion RMB, respectively, with year-over-year growth rates of 15.8%, 12.8%, and 11.5% [3][4]. - Earnings per share (EPS) are projected to be 5.6 RMB, 6.3 RMB, and 7.0 RMB for the same years, with corresponding price-to-earnings (P/E) ratios of 11X, 10X, and 9X [3][4].