APAC Focus: Midea Group "UBS Evidence Lab inside: Transforming from home app..."

Research evidence excerpt

APAC Focus: Midea Group "UBS Evidence Lab inside: Transforming from home app..."

FigureSource:Company20: EBITdata.marginNote: Revenuecomparisonin USD. Groupfor globalEBIT marginIR leadersEBITis used for Fanuc due to lack of segmental

data. Robot segment financials adjusted to Dec-Nov for Yaskawa. Missing Robotics & Discrete Automation

segment data for ABB in 2025 as it merged into the Automation segment in 2025.

3) KUKA helps Midea to improve operation efficiency

KUKA enables Midea factories to achieve leading IR density to improve

efficiency. Midea's IR density has increased from about 240 unit/10,000 people in 2020

to 670 unit/10,000 people by 2025, which has exceeded mainland China and global

average in 2024. Application of IR has led to many examples of reducing working hours

and improving efficiency in Midea.

FigureSource:Company21: IR densitydata, IFR trend and comparison FigureSource:Company22: Midea'sdata margins improved in 2021-25Midea

Midea's humanoid robotics potential overlooked

Midea developed semi, full, and super humanoid robots for factory automation (MIRO

series), and commercial and home services (MIRA series). Midea's HR applications start in

the industrial space, before expanding into the commercial and finally household

spaces. We think Midea's HR business is well positioned to succeed in both 2B and 2C

markets in the long term given its high R&D investment, strong robotics technologies

starting from core parts, and large data accumulated from applications in numerous

factories and stores. Considering that HR requires significant amounts of data for

training (1-20k data pieces for simple tasks like grasping fix-shaped objects and 100k-

plus for complex tasks like sorting), we think Midea's huge data accumulation will