Date of Report

October 1, 2024

Broker Name

CGS International Securities

Company Overview

Midea Group is a prominent player in the consumer discretionary sector, recognized for its manufacturing of home appliances and other consumer products in China.

Current Market Position

• Current Market Capitalization: Rmb 82.1 billion
• Current Price: Rmb 84.0
• Target Price: Rmb 76.1

Analyst Recommendation

• Recommendation: Add
• Expected Return: The stock’s total return is anticipated to exceed 10% over the next 12 months.

Financial Projections

• Forward P/E (2024): 13.7
• Forward P/E (2025): 12.5

Strategic Outlook

The report highlights that Midea Group is well-positioned to take advantage of the recent policy measures aimed at boosting consumption in China. With a focus on enhancing domestic demand through direct subsidies, Midea’s extensive product range aligns with consumer needs, potentially driving significant sales growth.

Risks and Considerations

While the outlook for Midea Group appears positive, investors should remain vigilant regarding potential regulatory scrutiny and economic volatility. The overall market conditions and geopolitical tensions may impact the company’s performance.

Summary

Midea Group is positioned as a compelling investment opportunity within the consumer discretionary sector, benefiting from favorable government policies and a strong market presence. The expected increase in consumer spending is likely to drive growth, making Midea Group an attractive consideration for investors.