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Consumer Durables

Midea Group Co. Ltd.

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 CNYUSD
Revenue277,659.89M40,183.17M
Gross Profit79,611.71M11,521.47M
Operating income25,423.34M3,679.28M
Income before tax29,422.88M4,258.10M
Net income24,170.12M3,497.92M
EBITDA30,591.60M4,427.24M
Diluted EPS3.560.51
Dividends Per Share1.600.23
Total Assets301,955.41M43,348.89M
Total liabilities193,842.16M27,828.09M
Total equity101,669.16M14,595.68M
Operating cash flow42,616.99M6,167.56M
Currency in CNYCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 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 1.60
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 2015Dec 2016Dec 2017Dec 2018Dec 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 0.23
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
PER16.16
ROA8.54%
ROE26.16%
Operating margin9.15%
Profit margin8.70%

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 (32.3%)
  • China Securities Finance Corp. Ltd. (2.8%)
  • Canada Pension Plan Investment Board (1.7%)
  • China Investment Corp. (Investment Management) (1.3%)
  • HUANG JIAN /MIDEA/ (1.2%)
  • E Fund Management Co., Ltd. (1.0%)
  • Orient Securities Asset Management Co. Ltd. (1.0%)
  • First State Investments (Hong Kong) Ltd. (0.8%)
  • LI JIAN WEI /MIDEA/ (0.7%)
  • HUANG XIAO XIANG (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

  • Zhejiang Meizhi Compressor Co., Ltd.
  • Midea Commercial Factoring Co., Ltd.
  • Foshan Midea Air Conditioner Industrial Investment Co. Ltd.
  • Midea Microfinance Co., Ltd.
  • Midea India Pvt Ltd.
  • Midea Innovation Investment Co. Ltd.
  • Wuhu Midea Life Electric Manufacturing Co., Ltd.
  • Wuhu Midea Kitchen Applicances Manufacturing Co., Ltd.
  • Midea Electrics Netherlands II BV
  • Guangzhou Hualing Refrigeration Equipment Co., Ltd.
  • Hefei Midea Refrigerator Co., Ltd.
  • Midea Electric 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 Maty Air-Conditioning Equipment Co., Ltd.
  • Wuhu Midea Washing Appliances Manufacturing Co. Ltd.
  • Midea Investment Development Co. Ltd.
  • Toshiba Lifestyle Products & Services Corp.
  • Foshan Midea Household Appliances Group Co., Ltd.
  • Guangdong Midea Lighting Electric Manufacturing Co. Ltd.
  • Midea Electric Trading (Singapore) Co. Pte Ltd.
  • Midea Singapore Trading Co. Pte Ltd.
  • Midea Group Wuhan Refrigeration Equipment Co., Ltd.
  • Midea Group Finance Co., Ltd.
  • Midea Electric (Hong Kong) Ltd.
  • Midea-Gorizont OOO

Competitors

  • Electrolux AB Class B
  • Regal Beloit Corp
  • Dayou Automotive Seat Technology Co., Ltd
  • Chigo Holding Limited
  • Whirlpool Corporation
  • SEB SA
  • Changhong Huayi Compressor Co., Ltd. Class A
  • Airmate (Cayman) International Co., Ltd.
  • Concepcion Industrial Corp.
  • Haier Electronics Group Co., Ltd.
  • iRobot Corporation
  • A. O. Smith Corporation
  • BEST, Inc. Sponsored ADR Class A
  • Strauss Group Ltd
  • Carrier Global Corp.
  • Brimag Digital Age Ltd
  • Zhejiang Yankon Group Co., Ltd. Class A
Last Updated on 27 Oct, 2020

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