Consumer Durables
Midea Group Co. Ltd.
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Company Background
Chinese home appliance maker Midea Group offers products such as air conditioners, refrigerators, washing machines and microwave ovens. Its main competitor is China's top air conditioner maker, Gree Electric Appliances.
He Xiangjian set up the company with friends in 1968 in the town of Foshan, Guangdong Province, beginning with a small operation producing plastic parts. It built earnings with electric fans and the like, and listed on the Shenzhen Stock Exchange in 1993. In 2012, He stepped down, replaced by current Chairman Fang Hongbo.
At the end of 2014, smartphone maker Xiaomi invested in Midea, taking a 1.288% stake. They plan to deepen their business relationship by combining Midea's home-appliance technology with smartphones to jointly produce, for example, a system to easily operate home appliances using smartphones. Recently, Midea has been building partnerships with other companies, including online retailer Jingdong Group.
Business Summary
Midea Group Co., Ltd. manufactures and sells home and commercial electric appliances. Its business segments include large appliances, water, kitchen, large & small cooking, heating, ventilation, electrical and logistics appliances. Its products include air conditioner, fan, bakery machine, rice cooker, microwave, oven, induction cooker, micro-electric air pot, kettle, vacuum cleaner, humidifier, heater, washing machine, water appliances, floor care, and dehumidifier. The company was founded by He Xiang Jian in 1968 and is headquartered in Foshan, China.
Financial Highlights
| Dec 2019 | CNY | USD |
| Revenue | 277,659.89M | 40,183.17M |
| Gross Profit | 79,611.71M | 11,521.47M |
| Operating income | 25,423.34M | 3,679.28M |
| Income before tax | 29,422.88M | 4,258.10M |
| Net income | 24,170.12M | 3,497.92M |
| EBITDA | 30,591.60M | 4,427.24M |
| Diluted EPS | 3.56 | 0.51 |
| Dividends Per Share | -- | -- |
| Total Assets | 301,955.41M | 43,348.89M |
| Total liabilities | 193,842.16M | 27,828.09M |
| Total equity | 101,669.16M | 14,595.68M |
| Operating cash flow | 42,616.99M | 6,167.56M |
| Currency in CNY | Currency in USD |
Historical Data
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 138,435.79M | 158,764.58M | 240,502.46M | 260,202.06M | 277,659.89M |
| Gross Profit | 35,209.21M | 42,706.69M | 59,788.27M | 71,844.80M | 79,611.71M |
| Operating income | 12,964.30M | 15,037.37M | 18,044.96M | 22,373.76M | 25,423.34M |
| Income before tax | 15,630.61M | 18,748.69M | 21,544.75M | 25,423.73M | 29,422.88M |
| Net income | 12,706.72M | 14,684.35M | 17,283.68M | 20,207.24M | 24,170.12M |
| EBITDA | 15,816.32M | 18,615.37M | 24,740.83M | 27,191.22M | 30,591.60M |
| Diluted EPS | 1.99 | 2.28 | 2.63 | 3.05 | 3.56 |
| Dividends Per Share | 0.80 | 1 | 1.20 | 1.30 | -- |
| Total Assets | 128,841.93M | 170,600.71M | 248,106.85M | 263,701.14M | 301,955.41M |
| Total liabilities | 72,809.81M | 101,621.61M | 165,179.18M | 170,599.04M | 193,842.16M |
| Total equity | 49,201.85M | 61,126.92M | 73,737.43M | 83,072.11M | 101,669.16M |
| Operating cash flow | 28,853.15M | 28,649.05M | 27,170.22M | 29,959.02M | 42,616.99M |
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 22,025.95M | 23,897.52M | 35,586.64M | 39,323.20M | 40,183.17M |
| Gross Profit | 5,601.99M | 6,428.28M | 8,846.74M | 10,857.59M | 11,521.47M |
| Operating income | 2,062.69M | 2,263.45M | 2,670.07M | 3,381.24M | 3,679.28M |
| Income before tax | 2,486.92M | 2,822.08M | 3,187.93M | 3,842.17M | 4,258.10M |
| Net income | 2,021.71M | 2,210.31M | 2,557.43M | 3,053.83M | 3,497.92M |
| EBITDA | 2,516.47M | 2,802.01M | 3,660.85M | 4,109.29M | 4,427.24M |
| Diluted EPS | 0.31 | 0.34 | 0.38 | 0.46 | 0.51 |
| Dividends Per Share | 0.12 | 0.15 | 0.17 | 0.19 | -- |
| Total Assets | 19,841.37M | 24,548.63M | 38,099.94M | 38,408.48M | 43,348.89M |
| Total liabilities | 11,212.54M | 14,622.86M | 25,365.35M | 24,848.02M | 27,828.09M |
| Total equity | 7,576.97M | 8,795.87M | 11,323.31M | 12,099.58M | 14,595.68M |
| Operating cash flow | 4,590.70M | 4,312.30M | 4,020.32M | 4,527.57M | 6,167.56M |
Valuation Measures
| Dec 2019 | |
| PER | 16.16 |
| ROA | 8.54% |
| ROE | 26.16% |
| Operating margin | 9.15% |
| Profit margin | 8.70% |
Key executives
- Chairman, President & General Manager: Hong Bo Fang
- Chairman-Supervisory Board: Francoise Liu
- Chief Financial Officer: Helmut Zodl
- Chief Technology Officer & Vice President: Zi Qiang Hu
- Vice President & Head-Domestic Marketing: Jin Liang Wang
Shareholders
- HE XIANG JIAN (32.4%)
- China Securities Finance Corp. Ltd. (2.9%)
- Canada Pension Plan Investment Board (1.7%)
- China Investment Corp. (Investment Management) (1.3%)
- HUANG JIAN /MIDEA/ (1.2%)
- Orient Securities Asset Management Co. Ltd. (1.0%)
- China Universal Asset Management Co., Ltd. (0.9%)
- E Fund Management Co., Ltd. (0.9%)
- First State Investments (Hong Kong) Ltd. (0.8%)
- LI JIAN WEI /MIDEA/ (0.7%)
Contact Details
- Website:http://www.midea.com.cn
- Address: Midea Headquartere Building, No. 6 Midea Avenue, Foshan, 528311, China
- Phone: +86.757.2633.8888
Related Companies
- Foshan Midea Air Conditioner Industrial Investment Co. Ltd.
- Midea Innovation Investment Co. Ltd.
- Midea Electrics Netherlands II BV
- Guangzhou Hualing Refrigeration Equipment Co., Ltd.
- Midea Electrics Netherlands I BV
- Midea Group Partner Program Phase 3
- GD Midea Heating & Ventilating Equipment Co., Ltd.
- Electrolux Home Care Products, Inc. /Eureka Brand/
- Midea America Corp.
- Foshan Shunde Midea Electrical Heating Appliances Manufacturin
- Jiangsu Midea Cleaning Appliances Co. Ltd.
- Wuhu Midea Washing Appliances Manufacturing Co. Ltd.
- Midea Investment Development Co. Ltd.
- Toshiba Lifestyle Products & Services Corp.
- Guangdong Midea Lighting Electric Manufacturing Co. Ltd.
- Midea Electric Trading (Singapore) Co. Pte Ltd.
- Midea Group Finance Co., Ltd.
- Midea Electric (Hong Kong) Ltd.
- Midea-Gorizont OOO
- Midea Living Appliances Group
- Clivet SpA
- Main Power Electrical Factory Ltd.
- Midea Electric Investment (BVI) Ltd.
- Midea Investment Holding (BVI) Ltd.
- Wuhu Annto Logistics Co. Ltd.
- Hunan Sanxiang Passenger Carriage Co. Ltd.
- Shunde Welling Electric Motor Manufacturing Co. Ltd.
- Foshan City Midea Electric Appliance Co. Ltd.
- Midea International Holding Co. Ltd.
- Midea International Corp. Co. Ltd.
Competitors
- Electrolux AB Class B
- Chigo Holding Limited
- Haier Electronics Group Co., Ltd.
- Whirlpool Corporation
- SEB SA
- Regal Beloit Corp
- Sichuan Changhong Electric Co., Ltd. Class A
- Airmate (Cayman) International Co., Ltd.
- Concepcion Industrial Corp.
- Solareast Holdings Co., Ltd. Class A
- iRobot Corporation
- A. O. Smith Corporation
- BEST, Inc. Sponsored ADR Class A
- Elec-tech International Co., Ltd. Class A
- Carrier Global Corp.
- Brimag Digital Age Ltd
- Zhejiang Yankon Group Co., Ltd. Class A
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Last Updated on 29 May, 2020