Midea Group(000333) 群益证券·2024-05-06 08:00Investment Rating - The report assigns a "Buy" rating for the company, Midea Group, with a target price of 83 CNY [1][4]. Core Insights - The company reported a steady revenue growth of 10.2% year-over-year (YOY) in Q1 2024, achieving a revenue of 106.48 billion CNY and a net profit of 9.00 billion CNY, which is an 11.9% increase YOY [4][5]. - The smart home business showed a revenue increase of 11% YOY, driven by new channel development and significant growth in overseas e-commerce sales, particularly in markets like Brazil, Egypt, Malaysia, and the Middle East [4][5]. - The overall gross margin improved by 3.3 percentage points to 27.6% in Q1 2024, benefiting from changes in product mix and currency depreciation [5]. Summary by Sections Company Overview - Midea Group operates in the home appliance industry, with a market capitalization of approximately 477.42 billion CNY and a share price of 69.78 CNY as of April 30, 2024 [1]. Financial Performance - Q1 2024 financial results include a net profit of 9.00 billion CNY and a net profit margin of 8.5% [4]. - The company expects net profits for 2024-2026 to be 39.06 billion CNY, 44.05 billion CNY, and 49.11 billion CNY, respectively, with year-over-year growth rates of 15.8%, 12.8%, and 11.5% [5][6]. Market Position - The product mix includes HVAC (43.6%), consumer appliances (36.2%), and robotics and automation (8.7%) [2]. - Institutional investors hold 11.9% of the circulating A-shares, with general corporations holding 52.0% [2]. Future Outlook - The company is expected to benefit from government policies promoting appliance upgrades, which will support steady growth in appliance consumption [5]. - The employee stock ownership plan is anticipated to enhance profit quality [5].