Midea Group Co Ltd

Midea Group maintains a conservative capital structure with a debt-to-equity ratio of 0.31 and a current ratio of 1.21, indicating adequate short-term liquidity despite a medium liquidity risk rating. The balance sheet shows total assets of 608.8 billion CNY against total liabilities of 385.6 billion CNY, with long-term debt standing at 68.2 billion CNY. Cash and equivalents are reported at 80.3 million CNY, resulting in a negative net cash position after subtracting total debt, which is flagged as a key risk. The company generates substantial operating cash flow of 53.3 billion CNY, supporting a free cash flow of 9.0 billion CNY after capital expenditures of 11.1 billion CNY.

Profitability metrics demonstrate strong returns, with a return on equity of 19.8% and a return on assets of 7.26%. The company trades at a price-to-earnings ratio of 12.44 and an EV/EBITDA of 11.68, suggesting a valuation that reflects its mature market position. The price-to-book ratio is 2.46, aligning with the tangible book value multiple. Gross profit stands at 121.8 billion CNY on revenue of 458.5 billion CNY, yielding a gross margin of approximately 26.6%, while operating income is 53.0 billion CNY, indicating efficient operational leverage.

Midea Group Co Ltd (000333.SZ) has undergone a significant revision in its analytical profile, marked by a substantial recalibration of its estimated market share. The most material change recorded is a 97.51% decrease in the company's calculated market share percentage, dropping from approximately 18.67% to 0.46%. This drastic adjustment, sourced from the ha_light_thesis analysis, represents a fundamental shift in how the company's competitive positioning is currently modeled within the dataset. Concurrently, the core narrative components of the company's analysis have been extensively rewritten. The AI-generated business summary, narrative, and conclusion have all been modified with very low similarity scores to their previous versions (0.085, 0.025, and 0.025, respectively). This indicates that the underlying logic or data inputs driving the qualitative assessment of Midea Group have changed significantly, rather than merely undergoing minor updates. The structural composition of the analysis has also shifted, with the key takeaways section seeing a net reduction of eight points, despite the addition of new insights. This pruning of key takeaways, combined with the narrative revisions, suggests a consolidation of the company's value proposition or a correction of previously overstated factors. The system notes that while 17 fields were walked, there was no material change versus the prior analysis in terms of schema expansion, implying these are refinements of existing metrics rather than the introduction of new categories. Despite these internal analytical shifts, external market attention remains sparse. Cross-source signals indicate minimal dispatch activity over the past month, with only isolated instances of coverage on June 27 and July 9, 2026. With 11 analysts covering the stock and one top holder identified, the lack of recent news flow suggests that the current changes are driven by internal model recalibrations or data corrections rather than immediate external corporate events or market-moving announcements.

Revenue grew 12.1% year-over-year to CNY 458.5 billion in FY2026, demonstrating strong top-line expansion momentum.

Net income increased 14.0% to CNY 43.9 billion in FY2026, outpacing revenue growth and indicating margin expansion.

Analysts project 21.6% upside to a mean price target of CNY 97.03, reflecting positive market sentiment.

Long-term debt surged to CNY 87.1 billion in FY2025, increasing leverage and potential interest expense burdens.

Operating margin of 11.46% trails the cohort median of 12.03%, suggesting competitive pressure on core operational efficiency.

Medium liquidity risk flags indicate potential challenges in meeting short-term obligations under stressed market conditions.

Cash conversion ratio of 1.21 is below the cohort median of 1.22, indicating slightly weaker cash flow quality.

Revenue ¥131.58B, +2,5% YoY; Operating income −0,5% YoY.

• ▍Revenue ¥131.58B, +2,5% YoY
• ▍Operating income −0,5% YoY
• ▍Net income +2,0% YoY
• ▍Net margin 9.6%

Revenue ¥93.79B, +5,7% YoY; Operating income −11,9% YoY.

• ▍Revenue ¥93.79B, +5,7% YoY
• ▍Operating income −11,9% YoY
• ▍Net income −11,3% YoY
• ▍Net margin 6.5%

Revenue ¥112.38B, +9,9% YoY; Operating income +12,7% YoY.

• ▍Revenue ¥112.38B, +9,9% YoY
• ▍Operating income +12,7% YoY
• ▍Net income +8,9% YoY
• ▍Net margin 10.6%

Revenue ¥123.90B, +11,0% YoY; Operating income +10,0% YoY.

• ▍Revenue ¥123.90B, +11,0% YoY
• ▍Operating income +10,0% YoY
• ▍Net income +15,1% YoY
• ▍Net margin 11.0%

Revenue ¥128.43B; Operating income ¥15.12B.

• ▍Revenue ¥128.43B
• ▍Operating income ¥15.12B
• ▍Net margin 9.7%

Revenue ¥88.73B; Operating income ¥8.22B.

• ▍Revenue ¥88.73B
• ▍Operating income ¥8.22B
• ▍Net margin 7.7%

Revenue ¥102.23B; Operating income ¥12.86B.

• ▍Revenue ¥102.23B
• ▍Operating income ¥12.86B
• ▍Net margin 10.7%

Revenue ¥111.64B; Operating income ¥14.66B.

• ▍Revenue ¥111.64B
• ▍Operating income ¥14.66B
• ▍Net margin 10.6%

Revenue ¥458.50B, +12,1% YoY; Operating income +14,2% YoY.

• ▍Revenue ¥458.50B, +12,1% YoY
• ▍Operating income +14,2% YoY
• ▍Net income +14,0% YoY
• ▍Free cash flow −40,7% YoY
• ▍Net margin 9.6%

Revenue ¥409.08B, +9,5% YoY; Operating income +15,1% YoY.

• ▍Revenue ¥409.08B, +9,5% YoY
• ▍Operating income +15,1% YoY
• ▍Net income +14,3% YoY
• ▍Free cash flow +5,8% YoY
• ▍Net margin 9.4%

Revenue ¥373.71B, +8,1% YoY; Operating income +16,0% YoY.

• ▍Revenue ¥373.71B, +8,1% YoY
• ▍Operating income +16,0% YoY
• ▍Net income +14,1% YoY
• ▍Free cash flow −7,6% YoY
• ▍Net margin 9.0%

Revenue ¥345.71B, +0,7% YoY; Operating income +4,5% YoY.

• ▍Revenue ¥345.71B, +0,7% YoY
• ▍Operating income +4,5% YoY
• ▍Net income +3,4% YoY
• ▍Free cash flow −2,5% YoY
• ▍Net margin 8.5%