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 2021 | CNY | USD |
| Revenue | 341,751.44M | 52,989.99M |
| Gross Profit | 77,125.36M | 11,958.60M |
| Operating income | 25,373.55M | 3,934.27M |
| Income before tax | 33,156.86M | 5,141.11M |
| Net income | 28,491.49M | 4,417.72M |
| EBITDA | 31,556.40M | 4,892.95M |
| Diluted EPS | 4.12 | 0.63 |
| Dividends Per Share | 1.70 | 0.26 |
| Total Assets | 387,946.10M | 60,870.04M |
| Total liabilities | 251,892.56M | 39,522.78M |
| Total equity | 124,868.12M | 19,592.22M |
| Operating cash flow | 40,739.98M | 6,316.90M |
| Currency in CNY | Currency in USD |
Historical Data
| Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | |
| Revenue | 240,502.46M | 260,202.06M | 277,659.89M | 284,176.08M | 341,751.44M |
| Gross Profit | 59,788.27M | 71,844.80M | 79,611.71M | 71,224.35M | 77,125.36M |
| Operating income | 18,044.96M | 22,373.76M | 25,423.34M | 23,663.80M | 25,373.55M |
| Income before tax | 21,544.75M | 25,423.73M | 29,422.88M | 31,261.01M | 33,156.86M |
| Net income | 17,283.68M | 20,207.24M | 24,170.12M | 27,158.03M | 28,491.49M |
| EBITDA | 24,740.83M | 27,191.22M | 30,591.60M | 28,684.06M | 31,556.40M |
| Diluted EPS | 2.63 | 3.05 | 3.56 | 3.89 | 4.12 |
| Dividends Per Share | 1.20 | 1.30 | 1.60 | 1.60 | 1.70 |
| Total Assets | 248,106.85M | 263,701.14M | 301,955.41M | 360,382.60M | 387,946.10M |
| Total liabilities | 165,179.18M | 170,599.04M | 193,842.16M | 235,365.77M | 251,892.56M |
| Total equity | 73,737.43M | 83,072.11M | 101,669.16M | 117,516.26M | 124,868.12M |
| Operating cash flow | 27,170.22M | 29,959.02M | 42,616.99M | 34,432.10M | 40,739.98M |
| Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | |
| Revenue | 35,586.64M | 39,323.20M | 40,183.17M | 41,171.60M | 52,989.99M |
| Gross Profit | 8,846.74M | 10,857.59M | 11,521.47M | 10,319.02M | 11,958.60M |
| Operating income | 2,670.07M | 3,381.24M | 3,679.28M | 3,428.42M | 3,934.27M |
| Income before tax | 3,187.93M | 3,842.17M | 4,258.10M | 4,529.11M | 5,141.11M |
| Net income | 2,557.43M | 3,053.83M | 3,497.92M | 3,934.67M | 4,417.72M |
| EBITDA | 3,660.85M | 4,109.29M | 4,427.24M | 4,155.76M | 4,892.95M |
| Diluted EPS | 0.38 | 0.46 | 0.51 | 0.56 | 0.63 |
| Dividends Per Share | 0.17 | 0.19 | 0.23 | 0.23 | 0.26 |
| Total Assets | 38,099.94M | 38,408.48M | 43,348.89M | 55,106.05M | 60,870.04M |
| Total liabilities | 25,365.35M | 24,848.02M | 27,828.09M | 35,989.75M | 39,522.78M |
| Total equity | 11,323.31M | 12,099.58M | 14,595.68M | 17,969.39M | 19,592.22M |
| Operating cash flow | 4,020.32M | 4,527.57M | 6,167.56M | 4,988.54M | 6,316.90M |
Valuation Measures
| Dec 2021 | |
| PER | 17.71 |
| ROA | 7.61% |
| ROE | 23.50% |
| Operating margin | 7.42% |
| Profit margin | 8.33% |
Key executives
- Chairman & Chief Executive Officer: Hong Bo Fang
- Chief Financial Officer: Zheng Zhong
- Chief Technology Officer & Vice President: Zi Qiang Hu
- Vice President & Head-Domestic Marketing: Jin Liang Wang
- Executive Director & Vice President: Yan Min Gu
Shareholders
- HE XIANG JIAN (32.1%)
- China Securities Finance Corp. Ltd. (2.8%)
- Midea Group Co. Ltd. (2.4%)
- Canada Pension Plan Investment Board (1.5%)
- E Fund Management Co., Ltd. (1.4%)
- Capital Research & Management Co. (Global Investors) (1.3%)
- China Investment Corp. (Investment Management) (1.3%)
- HUANG JIAN /MIDEA/ (1.2%)
- First Sentier Investors (Hong Kong) Ltd. (1.0%)
- Invesco Great Wall Fund Management Co. Ltd. (Invt Mgmt) (0.8%)
Contact Details
- Website:http://www.midea-group.com
- Address: Midea Headquartere Building, No. 6 Midea Avenue, Foshan, 528311, China
- Phone: +86.757.2633.8888
Related Companies
- Guangdong Midea Smart Home Furnishing Technology Co., Ltd.
- Shanghai M-BMS Intelligent Construction Co. Ltd.
- Midea Intelligent Lighting & Controls Technology Co., Ltd.
- Midea Industrial Technology
- Guangdong Midea Electric Co. Ltd.
- Kuka Robotics Australia Pty Ltd.
- Zhejiang Meizhi Compressor Co., Ltd.
- Midea Commercial Factoring Co., Ltd.
- Foshan Midea Air Conditioner Industrial Investment Co. Ltd.
- Midea Microfinance Co., Ltd.
- Meidi Capital (Guangdong) Investment Management 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
- 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.
Competitors
- Regal Rexnord Corporation
- Dayou Automotive Seat Technology Co., Ltd
- Chigo Holding Limited
- Airmate (Cayman) International Co., Ltd.
- Whirlpool Corporation
- SEB SA
- A. O. Smith Corporation
- iRobot Corporation
- Runner (Xiamen) Corp. Class A
- Middleby Corporation
- Strauss Group Ltd
- Carrier Global Corp.
- Tianyang New Materials (Shanghai) Technology Co., Ltd. Class A
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