HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

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Equity Capital Markets

Midea Group Co Ltd A / Equity Capital Markets

<ul>
<li>China’s home appliance industry is facing challenges. Even with large-scale "trade in" activities, its expansion effect on market size still appears limited, making it difficult to trigger significant growth momentum.</li>
<li>However, Midea still achieved strong performance growth in 24H1. Both revenue and net profit showed double-digit growth rates. Midea's business expansion and product profitability are much better than peers.</li>
<li>Performance drivers are overseas business and air conditioners. Our forecast is Midea’s 2024 net profit would reach about RMB37 billion. Valuation of Midea could 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 Smart Home.</a>
</li>
</ul>


China’s home appliance industry is facing challenges. Even with large-scale "trade in" activities, its expansion effect on market size still appears limited, making it difficult to trigger significant growth momentum.
However, Midea still achieved strong performance growth in 24H1. Both revenue and net profit showed double-digit growth rates. Midea's business expansion and product profitability are much better than peers.
Performance drivers are overseas business and air conditioners. Our forecast is Midea’s 2024 net profit would reach about RMB37 billion. Valuation of Midea could be higher than Haier Smart Home.



Pre-IPO Midea Group H Share (PHIP Updates) - Some Points Worth the Attention