Midea Group(000333) 长江证券·2024-05-16 06:32Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company reported a stable high growth in revenue, achieving an operating income of 106.1 billion yuan in Q1 2024, a year-on-year increase of 10.22%. The net profit attributable to shareholders reached 9 billion yuan, up 11.91%, while the net profit excluding non-recurring items was 9.24 billion yuan, reflecting a growth of 20.39% year-on-year [4][5]. Summary by Sections Revenue Performance - In Q1 2024, the company achieved a revenue of 106.1 billion yuan, marking a 10.22% increase year-on-year. The smart home business saw an approximate 11% growth, with air conditioning and refrigerator sales expected to grow close to double digits, while washing machines and kitchen appliances exceeded double-digit growth. Notably, overseas e-commerce retail sales surged by about 60% [4][5]. Profitability - The company's gross margin improved significantly, rising by 3.28 percentage points to 27.32% in Q1 2024, primarily due to favorable exchange rate factors. Both C-end and B-end business segments experienced year-on-year gross margin increases. The non-recurring net profit saw a substantial year-on-year growth of 20.39% [4][5]. Future Outlook - The company is expected to maintain its leading position in the air conditioning, washing, and small appliance sectors due to strong cost, operational, and brand advantages. The smart home business is projected to continue steady growth. The B-end business has significant growth potential, supported by short-term consumer electronics components, commercial air conditioning, and industrial robotics. The company anticipates net profits attributable to shareholders of 37.68 billion, 41.72 billion, and 46.16 billion yuan for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 12.92, 11.66, and 10.54 [5].