Midea Group (000333) Midea ‘s strong retail performance on the market in April

Midea Group (000333) Midea ‘s strong retail performance on the market in April
The recent situation of the company Ovie Cloud Network monitoring, the growth rate of China’s home appliance retail market in April fell, especially above the offline channel.Midea has a strong market retail performance on everyone’s wire, and it is divided into two categories. Comment on the US air conditioner retail growth in April is significantly higher than the market: 1) Since the US air conditioner launched its promotional strategy in late February, the retail sales growth has continued to significantly exceed the industry.In April, Midea ‘s online retail sales of air conditioners increased by 63% each year, ranking first in the market.2) Although Midea adopted a cost-effective strategy, which led to a decline in the average retail price, through the improvement of efficiency, Midea’s gross profit margin remained better.In addition, Midea has begun to restrict the development of Oaks.3) Due to the good retail growth in March and April, the channel inventory level of Midea is the lowest. 4) Gree is not cutting prices, and there is no price war in the market. Midea ‘s online appliance retail sales have grown rapidly: 1) Midea ‘s retail sales in the refrigerator and washing machine online market increased by 27% and 49% in April, significantly higher than the industry.The washing machine market, Midea, Little Swan’s differentiated positioning achieved good results.The average offline retail price of Little Swan in April was 3494 yuan, surpassing the Haier brand; the average online price was the same as Haier.Midea’s April offline average price has been reduced by 5% every year, strengthening its cost-effective positioning.Refrigerators are not as competitive as washing machines, so online growth is more likely to result in lower prices.2) Midea’s kitchen appliances business is still in an adjustment period. In April, online and offline retail continued to 杭州桑拿 shift; kitchen small appliances business performed moderately, and its growth was close to that of the industry. The impact of the trade war is small: the company’s exports to the United States are about 2 billion US dollars, accounting for about 6% of its revenue.Companies can transfer orders to overseas bases to resolve tariff barriers. Midea is temporarily suspending the merger of Little Swan, which will increase the company’s net profit attributable to the parent company by 1 billion in 2019, but will also increase its share capital. It is estimated that the merger of Little Swan will not be considered for the time being, and the EPS forecast for 2019/20 will be maintained3.46/3.88 yuan. Maintain recommended level and target price of 62.40 yuan, corresponding to 18/16 times P / E in 2019/20, compared with the current 23% increase.The company currently expects to correspond to 15/13 times P / E in 2018/19. Risk Market Demand Risk Risk; Sino-US Trade Friction Risk; Global M & A Integration Risk