HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>Midea will achieve double-digit growth in 2025. As domestic home appliance market enters a stage of competition for existing customers, B-end market and overseas markets have become new growth keys.</li>
<li>The development path of three giants becomes clear - Midea pursues full industry chain synergy with diversified layout/digital capabilities.Haier builds a global brand matrix through high-end/localized operations.Gree is lagging behind.</li>
<li>For mature industry leading enterprises, 10-18x P/E is reasonable, or market value of RMB430-855bn based on Midea’s 2025 net profit forecast. Considering higher growth, valuation would be higher than <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier.</a>
</li>
</ul>


Midea will achieve double-digit growth in 2025. As domestic home appliance market enters a stage of competition for existing customers, B-end market and overseas markets have become new growth keys.
The development path of three giants becomes clear - Midea pursues full industry chain synergy with diversified layout/digital capabilities.Haier builds a global brand matrix through high-end/localized operations.Gree is lagging behind.
For mature industry leading enterprises, 10-18x P/E is reasonable, or market value of RMB430-855bn based on Midea’s 2025 net profit forecast. Considering higher growth, valuation would be higher than Haier.



Midea Group (300 HK/000333) - High Growth Is Expected to Continue in the Short Term

Equity Analyst - Fundamental & Thematic, Sree Capital

Sreemant Dudhoria,CFA

Equity Analyst - Fundamental & Thematic

Fundamental Research on Listed Indian Companies

Sree Capital

Sree Capital is a platform to share fundamental research on listed Indian companies. We do this research for our own investment

<ul>
<li>
Firing on All Cylinders :<a href="https://www.smartkarma.com/entities/midea-group-co-ltd" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group (300 HK)</a> delivered robust 15.7% YoY revenue growth and 25% profit increase in H1 2025, driven by strong domestic demand and overseas expansion.</li>
<li>
Disciplined Execution : Smart Home remained the largest contributor, while Energy Solutions and Intelligent Building Technology delivered fastest growth; overseas revenue rose 17.7% YoY, now 42.5% of group sales.</li>
<li>Available at compelling valuation of 13.7x P/E (FY25e), Midea emphasizes R&amp;D leadership, digital transformation, and green solutions to sustain long-term growth.</li>
</ul>



Firing on All Cylinders :Midea Group (300 HK) delivered robust 15.7% YoY revenue growth and 25% profit increase in H1 2025, driven by strong domestic demand and overseas expansion.

Disciplined Execution : Smart Home remained the largest contributor, while Energy Solutions and Intelligent Building Technology delivered fastest growth; overseas revenue rose 17.7% YoY, now 42.5% of group sales.
Available at compelling valuation of 13.7x P/E (FY25e), Midea emphasizes R&amp;D leadership, digital transformation, and green solutions to sustain long-term growth.


Midea Group(300 HK)-Firing on All Cylinders; Disciplined Execution Across Legacy &Emerging Verticals

<ul>
<li>
Annto IPO: <a href="https://www.smartkarma.com/entities/midea-group-co-ltd" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group (300 HK)</a>plans to spin off its subsidiary Annto Logistics via a domestic IPO to unlock value in its fast-growing logistics platform.</li>
<li>
Share Buyback:<a href="https://www.smartkarma.com/entities/midea-group-co-ltd-a" target="_blank" data-smartkarma-citation="entities:16185:1" rel="noopener">Midea Group Co Ltd A (000333 CH)</a> announced a RMB 5–10 billion A-share buyback in June 2025, signaling confidence and supporting shareholder returns through disciplined capital allocation.</li>
<li>
B2B Transition: Shifting from a B2C appliance maker to a tech-led B2B solution provider. With B2B contribution over 30% of revenue, it positions it for long-term, higher-margin, solution-led global growth</li>
</ul>



Annto IPO: Midea Group (300 HK)plans to spin off its subsidiary Annto Logistics via a domestic IPO to unlock value in its fast-growing logistics platform.

Share Buyback:Midea Group Co Ltd A (000333 CH) announced a RMB 5–10 billion A-share buyback in June 2025, signaling confidence and supporting shareholder returns through disciplined capital allocation.

B2B Transition: Shifting from a B2C appliance maker to a tech-led B2B solution provider. With B2B contribution over 30% of revenue, it positions it for long-term, higher-margin, solution-led global growth


Midea Group(300 HK): Upcoming Spin-Off & IPO of 'Annto',Ongoing and Proposed Buyback, Strong Outlook

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/midea-group-co-ltd" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group (300 HK)</a> and <a href="https://www.smartkarma.com/entities/zto-express-cayman-inc" target="_blank" data-smartkarma-citation="entities:33488:1" rel="noopener">ZTO Express Cayman (2057 HK)</a> will be added to the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index (HSI INDEX)</a> in June to take us up to 85 index constituents.</li>
<li>Estimated one-way turnover is 2.9% and the estimated round-trip trade is HK$11.3bn (US$1.44bn) with over 1x ADV to trade in the adds and in one stock with a FAF increase.</li>
<li>There could be a short-term drop in the AH premium for <a href="https://www.smartkarma.com/entities/midea-group-co-ltd" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group</a> while this inclusion ensures <a href="https://www.smartkarma.com/entities/zto-express-cayman-inc" target="_blank" data-smartkarma-citation="entities:33488:1" rel="noopener">ZTO Express Cayman</a> is a member of all major indices where eligible.</li>
</ul>



Midea Group (300 HK) and ZTO Express Cayman (2057 HK) will be added to the Hang Seng Index (HSI INDEX) in June to take us up to 85 index constituents.
Estimated one-way turnover is 2.9% and the estimated round-trip trade is HK$11.3bn (US$1.44bn) with over 1x ADV to trade in the adds and in one stock with a FAF increase.
There could be a short-term drop in the AH premium for Midea Group while this inclusion ensures ZTO Express Cayman is a member of all major indices where eligible.


Hang Seng Index (HSI) Rebalance: Midea (300 HK) & ZTO Express (2057 HK) Added; Inching Towards a 100

<ul>
<li>
<a href="https://www.smartkarma.com/entities/midea-group-co-ltd" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group</a> listed in September 2024 by selling 650.85m shares (including the overallotment option) and raising HK$35.7bn (US$4.6bn). A large part of the offering was allocated to cornerstone investors.</li>
<li>Given the large company market cap and a free float that met the inclusion threshold, <a href="https://www.smartkarma.com/entities/midea-group-co-ltd" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group (300 HK)</a> was added to global indices via Fast Entry.</li>
<li>The lock-up expiry on cornerstone investors will increase the float for the stock in the global indices and <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index (HSTECH INDEX)</a> over the next two months.</li>
</ul>



Midea Group listed in September 2024 by selling 650.85m shares (including the overallotment option) and raising HK$35.7bn (US$4.6bn). A large part of the offering was allocated to cornerstone investors.
Given the large company market cap and a free float that met the inclusion threshold, Midea Group (300 HK) was added to global indices via Fast Entry.
The lock-up expiry on cornerstone investors will increase the float for the stock in the global indices and Hang Seng TECH Index (HSTECH INDEX) over the next two months.


Midea Group (300 HK): Cornerstone Lock-Up Expiry and Upcoming Index Flows

China

Midea Group Co., Ltd. manufactures and distributes home appliances. The Company produces water heaters, air conditioners, ventilation equipment, and consumer appliances. Midea Group also develops robotics and automation systems.

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Midea Group (300 HK)