CLSA Maintains Outperform Rating on Midea Group with Increased Price Target

Deep News05-04

CLSA has issued a research report stating that Midea Group (00300, 000333.SZ) reported a 2.5% increase in revenue and a 2% rise in net profit for the first quarter of 2026, outperforming industry peers. Domestic sales growth outpaced overseas sales during the period. The brokerage anticipates that domestic sales will slow due to weakening local demand, while overseas sales are expected to accelerate to high single-digit growth in the coming periods, supported by a lower base. CLSA views Midea's collaboration with Electrolux in North America as the beginning of the formal penetration of the Midea brand into the U.S. market. The firm has raised its profit forecasts for Midea and increased its H-share and A-share target prices from HK$94 and RMB 86 to HK$99 and RMB 90, respectively, primarily reflecting lower marketing expenses. CLSA maintains an Outperform rating on the stock.

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