Company Coverage
Midea Group (000333 CH): 2Q26: Results In Line; OBM A Bright Spot; Maintains Full-year Guidance
BUY (Maintained)
Current price:
Target price:
Upside:
Rmb86.23
Rmb112.60
+30.6%
Analyst
Analyst
Highlights
Midea reported in-line 2Q26 results. Revenue growth accelerated to over 5% yoy in 2Q26, led by overseas markets, which grew over 10%, while domestic market grew by low single-digits.
OBM growth momentum accelerated in 2Q26, and it now accounts for over 50% of overseas ToC revenue. Management expects OBM growth to accelerate further in 2H26 vs 1H26, and to maintain a solid growth pace in 2027-28. ToB revenue grew 3% in 2Q26, with domestic and overseas markets expanding at similar pace. Management expects ToB segment revenue growth to outpace ToC in 2H26.
For the full year, management maintains its guidance of mid-to-high single digit revenue growth and a stable net margin. Tariff refunds are expected to be reflected in 2H26 (not yet reflected in 1H26).
Maintain BUY and keep target price unchanged at Rmb112.60.
Analysis
2Q26 results in line. Midea Group (Midea) reported 1H26 revenue of Rmb261,052m (+3% yoy). Gross profit was Rmb66,685m (+2% yoy), with gross margin at 25.5% (-0.4ppt yoy). EBIT was Rmb27,876m (+10% yoy), with an EBIT margin of 10.7% (+0.6ppt yoy). Net profit was Rmb26,446m (+2% yoy), with net margin of 10.1% (-0.2ppt yoy). Both top-line and bottom line are in line with VA consensus.
Highlights
Midea reported in-line 2Q26 results. Revenue growth accelerated to over 5% yoy in 2Q26, led by overseas markets, which grew over 10%, while domestic market grew by low single-digits.
OBM growth momentum accelerated in 2Q26, and it now accounts for over 50% of overseas ToC revenue. Management expects OBM growth to accelerate further in 2H26 vs 1H26, and to maintain a solid growth pace in 2027-28. ToB revenue grew 3% in 2Q26, with domestic and overseas markets expanding at similar pace. Management expects ToB segment revenue growth to outpace ToC in 2H26.
For the full year, management maintains its guidance of mid-to-high single digit revenue growth and a stable net margin. Tariff refunds are expected to be reflected in 2H26 (not yet reflected in 1H26).
Maintain BUY and keep target price unchanged at Rmb112.60.
Analysis
2Q26 results in line. Midea Group (Midea) reported 1H26 revenue of Rmb261,052m (+3% yoy). Gross profit was Rmb66,685m (+2% yoy), with gross margin at 25.5% (-0.4ppt yoy). EBIT was Rmb27,876m (+10% yoy), with an EBIT margin of 10.7% (+0.6ppt yoy). Net profit was Rmb26,446m (+2% yoy), with net margin of 10.1% (-0.2ppt yoy). Both top-line and bottom line are in line with VA consensus.
BUY (Maintained)
Current price:
Target price:
Upside:
Rmb86.23
Rmb112.60
+30.6%
Analyst
Analyst
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