Bank of America reiterated its positive outlook on Midea Group (00300), projecting sustained growth for the company through 2026. The report highlights the enterprise segment and overseas consumer business as key growth drivers, prompting the bank to maintain its "Buy" rating and HK$92.1 target price.
The research note emphasized Midea's building technology division—its largest and most profitable enterprise segment—which is expected to achieve $10 billion in sales by 2030, accounting for over 10% of group revenue with a 15% compound annual growth rate.
Bank of America also identified significant potential in China's data center cooling market. With advancements in domestic GPU chip technology, industry experts anticipate China's transition to U.S.-style technology models within two years, potentially expanding the market to $10 billion. Currently ranked among China's top five players, Midea stands to benefit from its refrigerant system expertise during this technological shift, further strengthening its position in this high-growth sector.
Comments