Midea Group Co. Ltd. Class H (0300) AI Stock Analysis

• Market Cap: HK$616.01B
• Dividend Yield: 4.39%
• Average Volume (3M): 4.48M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.92
• Revenue Growth: 12.14%
• EPS Growth: N/A
• Country: HK
• Employees: 198,432
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 2.05
• Shares Outstanding: 650,848,500
• 10 Day Avg. Volume: 5,222,899
• 30 Day Avg. Volume: 4,478,004
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$100.50
• Price Target Upside: 15.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 80 Outperform
• Price Target: HK$89.00 ▲(2.53% Upside)

Midea Group Co. Ltd. achieves a strong overall stock score driven by its robust financial performance and attractive valuation. The company's solid revenue growth, profitability, and financial stability are key strengths. The technical analysis provides a neutral outlook, balancing the overall assessment.

Midea Group Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Midea Group Co., Ltd., together with its subsidiaries, manufactures and sells home appliances, and robotic and automation systems in China and internationally. It operates through four segments: Heating & Ventilation, as well as Air-Conditioner; Consumer Appliances; Robotics and Automation system; and Others. The company offers residential air-conditioner, central air-conditioner, heating and ventilation systems, kitchen appliances, refrigerators, washing machines, various small appliances, elevators, variable frequency drives, medical imaging products, and robotics and automation system It also provides core components, such as compressors, motors, chips, valves, reducers, auto parts, motion control and automation, high and low-voltage variable frequency drive, energy storage and cooling modules under the GMCC, Welling, CLOU Electronics, HICONICS, SERVOTRONIX, MR, MOTINOVA, MSCT, TOSHIBA, and SUNYE brand name. In addition, the company provides building solutions; industrial robotics, automatic logistics systems, and transmission systems for future factory-related fields and related solutions for health care, entertainment, new consumption, etc.; as well as smart supply chain solutions. Further, the company engages in sale, wholesale, and processing of raw materials of household electrical appliances; and the provision of financial services, such as customer deposit, interbank lending and borrowing, consumption credit, buyer's credit, and finance leasing services. Additionally, it provides Internet of Things solutions for intelligent appliances. Midea Group Co., Ltd. was founded in 1968 and is headquartered in Foshan, China.

How the Company Makes Money

Midea Group Co. Ltd. generates revenue through the sale of its diverse range of products and solutions in several key sectors. The company's primary revenue streams include its home appliance segment, which encompasses sales of air conditioners, refrigerators, washing machines, and other household appliances. Additionally, Midea's HVAC systems and industrial automation solutions contribute significantly to its earnings. The company also benefits from its investments in smart home technologies and its efforts to expand its global presence through strategic partnerships and acquisitions. Midea's innovative approach to product development and its focus on energy-efficient solutions further enhance its competitive edge in the market.

Midea Group Co. Ltd. Class H Financial Statement Overview

Summary

Midea Group Co. Ltd. demonstrates strong financial performance with robust revenue growth, effective cost management, and solid profitability margins. The company maintains financial stability with conservative leverage and strong cash flow generation, positioning it well in the industry.

Income Statement

Midea Group Co. Ltd. demonstrated strong revenue growth of 9.45% in 2024, indicating robust expansion in the company's market reach and product demand. The gross profit margin stood at 26.76% and net profit margin at 9.42%, both indicative of effective cost management and profitability. Additionally, the EBIT margin was 11.34% and the EBITDA margin was 13.92%, reflecting solid operational efficiency. The company has consistently improved its earnings, showcasing a positive trajectory in financial performance.

Balance Sheet

The balance sheet of Midea Group Co. Ltd. reflects financial stability with a debt-to-equity ratio of 0.21, suggesting conservative leverage and strong equity backing. The return on equity (ROE) is a healthy 17.78%, highlighting effective use of shareholder funds to generate profits. The equity ratio of 35.87% indicates a substantial equity base relative to total assets, providing a buffer against financial volatility. The company's balance sheet is characterized by a balance of growth and risk management.

Cash Flow

The cash flow statement reveals a favorable free cash flow growth rate of 2.10%, signifying steady cash generation capabilities. The operating cash flow to net income ratio of 1.57 and free cash flow to net income ratio of 1.37 demonstrate strong cash conversion efficiency, indicating that the company effectively generates cash from its operations. Overall, Midea Group Co. Ltd. maintains a solid cash flow position, contributing to its financial flexibility and long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	443.29B	409.08B	373.71B	345.71B	343.36B	285.71B
Gross Profit	115.33B	109.50B	97.30B	85.17B	78.83B	68.91B
EBITDA	55.09B	56.97B	50.43B	43.29B	41.26B	37.99B
Net Income	43.75B	38.54B	33.72B	29.55B	28.57B	27.22B
Balance Sheet
Total Assets	638.03B	604.35B	486.04B	422.56B	387.95B	360.38B
Cash, Cash Equivalents and Short-Term Investments	150.93B	147.35B	83.46B	58.55B	77.75B	109.45B
Total Debt	65.35B	46.59B	60.22B	60.53B	26.83B	52.77B
Total Liabilities	408.61B	376.68B	311.74B	270.63B	253.12B	236.15B
Stockholders Equity	216.11B	216.75B	162.88B	142.94B	124.87B	117.52B
Cash Flow
Free Cash Flow	57.05B	52.67B	51.59B	27.31B	28.27B	24.90B
Operating Cash Flow	64.30B	60.51B	57.90B	34.66B	35.09B	29.56B
Investing Cash Flow	-59.72B	-87.90B	-31.22B	-13.51B	13.60B	-35.31B
Financing Cash Flow	24.56B	22.70B	-17.91B	-10.85B	-31.20B	-756.29M

Midea Group Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0300, the sentiment is Positive. The current price of 86.8 is above the 20-day moving average (MA) of 81.34, above the 50-day MA of 79.01, and above the 200-day MA of 73.38, indicating a bullish trend. The MACD of 1.51 indicates Negative momentum. The RSI at 70.26 is Negative, neither overbought nor oversold. The STOCH value of 64.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0300.

Midea Group Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0300	80 Outperform	HK$616.01B	14.01	22.87%	4.39%	12.14%	―
Sector *	61 Neutral	$17.87B	13.25	-4.88%	3.05%	1.25%	-14.67%
HISEF	―	$4.72B	9.55	22.55%	5.20%	―	―
6690	79 Outperform	HK$259.39B	11.03	18.34%	4.02%	15.21%	12.60%
1691	50 Neutral	HK$7.50B	153.38	-14.41%	1.98%	1.29%	-386.78%

Midea Group Co. Ltd. Class H Corporate Events

Midea Group Announces Share Awards to Boost Employee Engagement

Midea Group Co., Ltd. has announced the grant of 1,243,100 awarded shares to 77 employees, including senior management, under its H Share Share Award Scheme. The awarded shares will vest in three tranches over a period from 2027 to 2029, contingent upon performance assessments at the group, workplace, and individual levels. This initiative aims to align employee incentives with the company’s strategic goals and performance targets, potentially enhancing employee motivation and retention.

The most recent analyst rating on (HK:0300) stock is a Buy with a HK$101.00 price target. To see the full list of analyst forecasts on Midea Group Co. Ltd. Class H stock, see the HK:0300 Stock Forecast page.

Midea Group Announces Final Dividend for 2024

Midea Group Co., Ltd. has announced a proposed distribution of a final dividend for the year ending December 31, 2024. The dividend declared is RMB 35 per 10 shares, payable in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.089909. The payment date is set for July 22, 2025, with specific withholding tax rates applied to non-resident shareholders. This move reflects Midea’s ongoing commitment to returning value to its shareholders and may impact investor sentiment positively.

The most recent analyst rating on (HK:0300) stock is a Buy with a HK$101.00 price target. To see the full list of analyst forecasts on Midea Group Co. Ltd. Class H stock, see the HK:0300 Stock Forecast page.

Midea Group’s AGM Approves Key Resolutions for 2024

Midea Group Co., Ltd. held its 2024 Annual General Meeting (AGM) where all proposed resolutions were approved, including amendments to the Articles of Association, payment of a final dividend, and election of an employee representative director. The AGM saw participation from a substantial number of shareholders and proxies, representing over 61% of voting shares. The approval of resolutions such as the profit distribution proposal and plans for share repurchase and issuance indicate strategic moves to enhance shareholder value and strengthen the company’s market position.

The most recent analyst rating on (HK:0300) stock is a Buy with a HK$101.00 price target. To see the full list of analyst forecasts on Midea Group Co. Ltd. Class H stock, see the HK:0300 Stock Forecast page.

Midea Group Announces Board Composition and Committee Roles

Midea Group Co., Ltd. has announced the current composition of its board of directors, highlighting the roles and functions of each member. The board consists of executive, non-executive, and independent non-executive directors, with Mr. Fang Hongbo serving as the Chairman and CEO. The board is structured into four committees: Audit, Remuneration and Evaluation, Nomination, and Strategy, with specific members assigned to each committee. This announcement underscores the company’s commitment to strong corporate governance and strategic oversight, which is crucial for maintaining its competitive edge and operational efficiency.

The most recent analyst rating on (HK:0300) stock is a Buy with a HK$101.00 price target. To see the full list of analyst forecasts on Midea Group Co. Ltd. Class H stock, see the HK:0300 Stock Forecast page.

Midea Group Announces Final Dividend for 2024

Midea Group Co., Ltd. has announced a proposed distribution of a final cash dividend for the year ending December 31, 2024. The dividend, amounting to RMB 35 per 10 shares, will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.089909, with a payment date set for July 30, 2025. This announcement reflects Midea’s financial performance and commitment to delivering shareholder value, potentially impacting investor sentiment positively.

The most recent analyst rating on (HK:0300) stock is a Buy with a HK$101.00 price target. To see the full list of analyst forecasts on Midea Group Co. Ltd. Class H stock, see the HK:0300 Stock Forecast page.

Midea Group Announces Final Dividend for 2024

Midea Group Co., Ltd. has announced an update regarding its proposed final dividend distribution for the year ending December 31, 2024. The dividend, amounting to RMB 35 per 10 shares, is subject to shareholders’ approval on May 30, 2025. The ex-dividend date is set for June 3, 2025, with the record date on June 10, 2025. The announcement reflects Midea’s commitment to returning value to its shareholders, potentially enhancing its market position and investor confidence.

The most recent analyst rating on (HK:0300) stock is a Buy with a HK$101.00 price target. To see the full list of analyst forecasts on Midea Group Co. Ltd. Class H stock, see the HK:0300 Stock Forecast page.

Midea Group Proposes 2024 Cash Dividend

Midea Group Co., Ltd. has announced a proposed cash dividend distribution for 2024, amounting to RMB35 per 10 shares, pending approval at the upcoming annual general meeting. The entitlement to this dividend will be determined by a book closure period from June 5 to June 10, 2025, during which no transfer of H shares will be registered, ensuring that eligible shareholders are accurately recorded.

The most recent analyst rating on (HK:0300) stock is a Buy with a HK$101.00 price target. To see the full list of analyst forecasts on Midea Group Co. Ltd. Class H stock, see the HK:0300 Stock Forecast page.

Midea Group Announces 2024 AGM with Key Resolutions on Shareholder Returns and Share Repurchase

Midea Group Co., Ltd. has announced its 2024 Annual General Meeting scheduled for May 30, 2025, where several key resolutions will be considered. These include approving the work report, final accounts, and annual report of 2024, as well as special resolutions on profit distribution, a three-year shareholders’ return plan, and a mandate for the repurchase of shares. The repurchase plan aims to safeguard the company’s value and shareholders’ interests, with the potential to repurchase up to 10% of issued H Shares.