Midea Group Could Benefit from Strong El Nino

Dow Jones08-26 15:17

0717 GMT - Midea Group is likely to benefit from a strong El Nino over 2026-2027, as the weather pattern could boost demand for air conditioners, say DBS Group Research analysts in a note. Extreme El Nino episodes have historically driven air-conditioning replacement and new equipment demand, which could benefit the home-appliance company, they say. Midea is also scaling its original brand manufacturing, which could contribute to reasons for rerating its shares, they add. DBS raises its target price to 115.80 Hong Kong dollars from HK$100.90 for Midea's Hong Kong-listed shares, and to 105.30 yuan from 91.70 yuan for its Shenzhen-listed shares. DBS reiterates its buy rating. Shares rise 0.1% to HK$98.75 in Hong Kong and closed 0.3% lower at 86.39 yuan in Shenzhen.

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