Midea Group Co Ltd Class A

000333: XSHE (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥65.00	Jtdhdlh	Ssxkcltmc

Midea Earnings: No Major Surprises; Shares Remain Undervalued

Chokwai Lee

Oct 31, 2023

Midea’s third-quarter net profit rose 12% year on year to CNY 9.5 billion, largely within our expectations. We maintain our fair value estimate at CNY 86. We think Midea’s ability to deliver earnings growth amid concerns about consumer spending and the lackluster real estate sector is impressive. We believe Midea is undervalued currently, underpinned by its operating efficiency and expanding market share. In the longer term, we expect growing market share in the premium segment, and the successful expansion of its business-to-business, or B2B, operations to drive share price performance.

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