Midea Group (000333): Steady business, determined to change
Key points of the report The event describes Midea Group’s 2018 annual report: the company achieved substantial revenue of 2,596.65 ppm, a ten-year increase of 7.87%, net profit attributable to 202.31 ppm, an increase of 17 in ten years.05%, to achieve EPS3.07 yuan; of which in the fourth quarter realized revenue of 539.08 million yuan, an increase of 0 in ten years.27%, achieving net profit attributable to 23.31 ppm, an increase of ten years.97%; the budget company plans to distribute 13 yuan (including tax) in cash for every 10 shares. Comment on the event The main business of home appliances performed steadily, and the revenue growth rate was in line with expectations: The sales boom in the second half of 2018 had an impact. The company’s revenue growth rate was high and low, so that it still achieved a large number of growth.The number of digits grew steadily, while KUKA was slightly under pressure in the short term.Considering that in the first quarter of 2019, driven by a positive price strategy, the company’s air-conditioning installation card growth performance was eye-catching, and refrigerators and washing machines and other businesses also continued to grow steadily. Under the overall influence, it is expected that the company’s overall revenue will achieve large growthSingle digit growth, the growth rate is more certain than the increase. In the fourth quarter, the gross profit margin improved and the profitability steadily increased: under the multiple factors such as average price uplink, reduced cost pressure, reduced amortization and improved exchange rate environment, the company’s gross profit margin increased significantly in the fourth quarter.66pct, which is increased by 2 each year in advance.50pct.In terms of expense ratios, although interest income has sometimes increased and financial expense ratios have improved, overall the expense ratios have continued to increase during the period.59pct, due to the decline in consolidated investment income and a higher base for asset disposal income in the same period last year, and other factors, 北京夜网 the company’s consolidated net attributable net income gradually increased under the combined influence.61pct to 7.79%. The operating quality is extremely good, and the second transformation is steadily advancing: the company’s own funds at the end of 2018 reached US $ 78.3 billion, an increase of 15 earlier.32%, other current debt increased by 19 in ten years.28%, net operating cash flow increased by 13.99%, the overall operating quality is extremely good.In addition, it is worth noting that the company gradually continues to promote the second transformation on the basis of the strategic leadership of “product leadership, efficiency-driven, global operations”, strives for change in multiple dimensions such as products, channels and brands, and uses a dynamic governance structure and the pursuit of efficiency.The spiritual 南宁桑拿 core will bring broad development prospects for the company. Proactive transformation and eager to embrace change, maintaining the company’s “Buy” rating: based on multi-business lines to maintain balanced development and structural upgrades to achieve sustainable development, the company’s revenue in 2019 is still expected to achieve steady growth, and the profit expansion “scissors gap” effect continues to appearThe company’s performance will maintain solid double-digit growth.In the long run, benefiting from the continuous advancement of the company’s second transformation, the company’s long-term development space is expected to be further opened. At the same time, under the protection of the industry’s leading equity incentive system, the company’s overall operation to maintain stable performance is worth looking forward to.In summary, the company’s EPS in 2019 and 2020 are expected to be 3 respectively.41, 3.81 yuan, corresponding to the current total of PE is 16.15, 14.47 times, maintain “Buy” rating. Risk reminders: 1. Terminal demand is less than expected; 2. Raw material prices have risen sharply; 3. The company’s internal adjustment effect has fallen short of expectations.