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

• Market Cap: HK$665.63B
• Dividend Yield: 5%
• Average Volume (3M): 3.57M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.87
• Revenue Growth: 12.46%
• EPS Growth: 9.95%
• Country: HK
• Employees: 198,432
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 1.70
• Shares Outstanding: 650,848,500
• 10 Day Avg. Volume: 3,227,780
• 30 Day Avg. Volume: 3,567,781
• PEG Ratio: 0.59
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 9.54
• 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$104.03
• Price Target Upside: 19.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: HK$100.00 ▲(14.74% Upside)

Midea Group's strong financial performance and attractive valuation are the primary drivers of its stock score. The technical analysis indicates a neutral trend with potential for upward movement. The lack of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Diversified Revenue Streams

A diversified revenue model reduces dependency on a single market, enhancing resilience against sector-specific downturns.

Strong Profit Margins

Healthy profit margins reflect efficient operations and cost management, contributing to sustainable profitability.

Negative Factors

Free Cash Flow Challenges

Declining free cash flow growth may impact the company's ability to invest in growth opportunities and maintain financial flexibility.

Gross Margin Decline

A decline in gross margin could indicate rising costs or pricing pressures, potentially affecting future profitability.

Asset Utilization

Improving asset utilization is crucial for maximizing returns on investment and enhancing overall operational efficiency.

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

Company Description

Midea Group Co. Ltd. Class H (0300) is a leading global manufacturer of home appliances and HVAC (heating, ventilation, and air conditioning) systems, headquartered in China. Established in 1968, Midea operates in various sectors including consumer appliances, industrial automation, and smart home solutions. Its core product offerings comprise refrigerators, washing machines, air conditioners, kitchen appliances, and other household items, along with commercial HVAC equipment and robotics.

How the Company Makes Money

Midea generates revenue through multiple key streams, primarily from the sale of consumer appliances and HVAC products. The company benefits from a diversified product portfolio, which enables it to capture a wide market segment both domestically and internationally. Midea's revenue model is bolstered by its emphasis on research and development, allowing the introduction of innovative products that meet changing consumer preferences. Additionally, strategic partnerships with retailers and distributors enhance its market reach. Midea has also ventured into smart home technologies, which are increasingly popular, further diversifying its revenue sources. The company's commitment to automation and efficiency in production helps reduce costs and improve profit margins, contributing to its overall financial performance.

Midea Group Co. Ltd. Class H Financial Statement Overview

Summary

Midea Group exhibits strong financial health with consistent revenue growth, robust profitability, and efficient cash flow management. The balance sheet is stable, with moderate leverage and effective equity utilization. While there are minor areas for improvement, such as cost management, the overall financial position is solid, supporting future growth prospects.

Income Statement

Midea Group has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.85%. The company maintains strong profitability with a gross profit margin of 26.27% and a net profit margin of 9.73% in the TTM. EBIT and EBITDA margins are also healthy, indicating efficient operations. However, the slight decline in gross profit margin compared to the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.25, indicating moderate leverage. Return on equity is robust at 20.46%, showcasing effective use of equity. The equity ratio of 33.86% suggests a solid capital structure, though there is room for improvement in asset utilization.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 8.3% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio of 1.47 suggests efficient cash conversion. The free cash flow to net income ratio of 0.87 highlights a strong ability to generate cash relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	463.86B	409.08B	373.71B	345.71B	343.36B	285.71B
Gross Profit	121.16B	109.50B	97.30B	85.17B	78.83B	68.91B
EBITDA	57.82B	56.97B	50.43B	43.29B	41.26B	37.99B
Net Income	45.82B	38.54B	33.72B	29.55B	28.57B	27.22B
Balance Sheet
Total Assets	648.49B	604.35B	486.04B	422.56B	387.95B	360.38B
Cash, Cash Equivalents and Short-Term Investments	101.77B	147.35B	83.46B	58.55B	77.75B	109.45B
Total Debt	96.81B	46.59B	60.22B	60.53B	26.83B	52.77B
Total Liabilities	392.61B	376.68B	311.74B	270.63B	253.12B	236.15B
Stockholders Equity	241.07B	216.75B	162.88B	142.94B	124.87B	117.52B
Cash Flow
Free Cash Flow	53.42B	52.67B	51.59B	27.31B	28.27B	24.90B
Operating Cash Flow	63.24B	60.51B	57.90B	34.66B	35.09B	29.56B
Investing Cash Flow	19.15B	-87.90B	-31.22B	-13.51B	13.60B	-35.31B
Financing Cash Flow	-71.05B	22.70B	-17.91B	-10.85B	-31.20B	-756.29M

Midea Group Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 87.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 87.15 is below the 20-day moving average (MA) of 88.91, above the 50-day MA of 86.45, and above the 200-day MA of 78.81, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 45.74 is Neutral, neither overbought nor oversold. The STOCH value of 20.97 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	78 Outperform	HK$665.63B	13.73	22.87%	5.00%	12.46%	9.95%
0921	74 Outperform	$36.90B	8.99	20.78%	5.64%	2.29%	3.18%
6690	74 Outperform	HK$267.73B	10.54	17.99%	5.20%	19.14%	14.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1691	45 Neutral	HK$6.64B	-11.47	-14.41%	―	1.29%	-386.78%

Midea Group Co. Ltd. Class H Corporate Events

Midea Group Announces Interim Dividend for 2025

Midea Group Co., Ltd. has announced an interim cash dividend of RMB 5 per 10 shares for the six months ending June 30, 2025. The dividend will be paid in Hong Kong dollars, with a conversion rate of RMB 1 to HKD 1.093843, and is subject to withholding tax regulations, including a 10% tax for non-resident enterprise and individual shareholders and a 20% tax for Mainland individual investors through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect.

Midea Group Announces Board of Directors and Their Roles

Midea Group Co., Ltd. has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement is significant as it outlines the leadership structure and governance of the company, which can impact its strategic direction and operational efficiency.

Midea Group Reports Strong Revenue and Profit Growth in Q3 2025

Midea Group Co., Ltd. has released its third quarterly report for 2025, showing a notable increase in both operating revenue and net profit attributable to shareholders compared to the previous year. The report highlights a 10.06% rise in operating revenue and a 19.51% increase in net profit for the first nine months of 2025. However, the company experienced a slight decrease in net cash flows from operating activities. These financial results indicate the company’s strong market performance and its ability to generate shareholder value, despite minor challenges in cash flow management.

Midea Group Schedules Board Meeting to Review Q3 Financial Results

Midea Group Co., Ltd. has announced a board meeting scheduled for October 29, 2025, to review and approve the company’s third-quarter financial results for the period ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder confidence.

Midea Group Concludes EGM with All Resolutions Passed

Midea Group Co., Ltd. announced the successful conclusion of its 2025 second extraordinary general meeting (EGM) where all proposed resolutions were passed. The key resolutions included the repurchase and cancellation of certain restricted shares under the 2021, 2022, and 2023 Restricted Share Incentive Schemes. This move is part of the company’s strategy to manage its share capital effectively and could potentially enhance shareholder value. The resolutions received overwhelming support from shareholders, indicating strong confidence in the company’s strategic direction.

Midea Group Announces Interim Dividend for 2025

Midea Group Co., Ltd. has announced an interim cash dividend of RMB 5 per 10 shares for the first half of 2025, with the payment to be made in Hong Kong dollars. This announcement reflects the company’s financial health and commitment to returning value to its shareholders, potentially strengthening its position in the market and enhancing investor confidence.

Midea Group Announces 2025 EGM to Address Key Resolutions

Midea Group Co., Ltd. has announced the convening of its 2025 second extraordinary general meeting (EGM) to discuss and approve several key resolutions. These include the repurchase and cancellation of restricted shares under various incentive schemes, the issuance of debt financing instruments, provision of guarantees for subsidiaries, amendments to the Articles of Association, and an interim profit distribution proposal for 2025. These resolutions are aimed at enhancing corporate governance, optimizing capital structure, and ensuring financial stability, which could have significant implications for shareholders and the company’s strategic positioning in the market.