Improving outlook in 2H26; strong shareholder returns

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Improving outlook in 2H26; strong shareholder returns

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Midea Group (H/A)

Improving outlook in 2H26; strong

shareholder returns

PO: 101.60 HKD | Price: 92.25 HKD

2Q26 preview; three reasons for Buy 21 July 2026

BofA preview – revenue +LSD-MSD driven by overseas and 2B (partly offset by likely Equity

domestic 2C declines), core NPAT -MSD on cost and FX losses, and reported NPAT up

YoY after factoring in investment gains as well as impairment charges. We reiterate Buy Chen Luo, CFA >> Research Analyst

rating due to 1) improving outlook in 2H26, 2) diversification into 2B and overseas to Merrill Lynch (Hong Kong)

support long-term growth and valuation, and 3) solid shareholder returns (100% payout +852chen.luo@bofa.com3508 2009

ratios including share buyback, with potential upside from investment gains), Lucy Yu >>

Research Analyst

Expecting improving outlook in 2H26 Merrill+65 6678Lynch0417(Singapore)

Midea guides for MSD-HSD revenue growth and largely stable core margins in FY26. We lucy.yu@bofa.com

estimate that its 1H26 run rate is tracking behind schedule, but see potential for a Jonas Yang >>

catch-up in 2H26. 1) 2C. China/overseas was +SD/flat in 1Q26, and estimated to be - Merrill Lynch (Hong Kong)

MSD/+MSD in 2Q26. We expect stronger China/overseas in 2H26, due to an easier base +852 3508 5834

jonas.yang@bofa.com

(demand pull-forward by trade-in subsidies in China and overseas rush orders amid trade

Alice Ma >>

wars in 1H26) and continued strength of OBM (expected to be +teens). 2) 2B. We Research Analyst

estimate 2B growth to be +MSD in 1H26 and expect similar or faster trends in 2H26. Merrill Lynch (Hong Kong) +852 3508 8752

Historically, 2B enjoyed >10% growth but FY26 growth could be below-trend given the alice.ma@bofa.com