Midea Group (000333 CH):  Strong 4Q23 Result As Expected

Analyst

Steve

Equity Capital Markets

Midea Group Co Ltd A / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gree-electric-appliances-inc-of-zhuhai" target="_blank" data-smartkarma-citation="entities:7622:1" rel="noopener">Gree Electric Appliances (000651 CH)</a> announced a profit alert for FY22 yesterday.  Net profit is expected to increase 10.2% - 19.6% yoy for the whole year.</li>
<li>The resilient result of Gree should alleviate concerns of the market that Midea is too correlated with China's new home sales. </li>
<li>The stock is trading at 10x 2024E earnings compared to an average of 13x over the last 10 years, with earnings likely growing at a high-single-digit pace.</li>
</ul>



Gree Electric Appliances (000651 CH) announced a profit alert for FY22 yesterday.  Net profit is expected to increase 10.2% - 19.6% yoy for the whole year.
The resilient result of Gree should alleviate concerns of the market that Midea is too correlated with China's new home sales. 
The stock is trading at 10x 2024E earnings compared to an average of 13x over the last 10 years, with earnings likely growing at a high-single-digit pace.


Midea (000333 CH):  Positive Read-Through From Gree's Profit Alert