The Guangfa Securities Research Report pointed out that Midea Group's overseas expansion and the B-side crossed the cycle to find steady and high returns. Increased local operation capacity is driving high overseas growth, and Midea is benefiting from the flexibility of 26H2 air conditioning exports to non-US regions. As air conditioning inventories disappear and consumer demand due to the El Niño climate increases, export flexibility for 26H2 air conditioners to Africa and the US is expected to be released. The B-side industry spilled over, creating a new growth pole for the US. From 2022 to 2025, the company's commercial and industrial solutions revenue rose from 83.6 billion yuan to 122.8 billion yuan. Public equity holdings in the home appliance sector have been low since 24Q2 and are less crowded. Focus on Midea's dividends and buybacks for high shareholder returns. The company's steady operation, high dividends and repurchases bring high shareholder returns. Compared with comparable companies, it enjoys a certain valuation premium. The company is given 15 times PE in 2027. The reasonable value of each corresponding A share is 99.75 yuan/share, maintaining a “buy” rating. Considering the A/H premium factor, H shares were given a reasonable market value of HK$112.13/share to maintain the “buy” rating.

The Guangfa Securities Research Report pointed out that Midea Group's overseas expansion and the B-side crossed the cycle to find steady and high returns. Increased local operation capacity is driving high overseas growth, and Midea is benefiting from the flexibility of 26H2 air conditioning exports to non-US regions. As air conditioning inventories disappear and consumer demand due to the El Niño climate increases, export flexibility for 26H2 air conditioners to Africa and the US is expected to be released. The B-side industry spilled over, creating a new growth pole for the US. From 2022 to 2025, the company's commercial and industrial solutions revenue rose from 83.6 billion yuan to 122.8 billion yuan. Public equity holdings in the home appliance sector have been low since 24Q2 and are less crowded. Focus on Midea's dividends and buybacks for high shareholder returns. The company's steady operation, high dividends and repurchases bring high shareholder returns. Compared with comparable companies, it enjoys a certain valuation premium. The company is given 15 times PE in 2027. The reasonable value of each corresponding A share is 99.75 yuan/share, maintaining a “buy” rating. Considering the A/H premium factor, H shares were given a reasonable market value of HK$112.13/share to maintain the “buy” rating.