# Midea Group (000333.SHE)

Canonical: https://gigainvestors.com/s/000333.SHE

Analysis as of: 2026-10-16T07:33:42.568Z. Financial observations: FY2003–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 84.71 per share; close as of 2026-10-15.

Estimated value: low CNY 72.88 per share, central CNY 81.41 per share, high CNY 92.75 per share. Buy at or below the central value CNY 81.41 per share. Valuation as of 2026-10-16T07:33:42.568Z; scenarios are not confidence intervals.

Expected annual return: 9.7% at the stated quote. About 9.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.10×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.09×

- FY2017: 0.08×

- FY2018: 0.09×

- FY2019: 0.09×

- FY2020: 0.08×

- FY2021: 0.07×

- FY2022: 0.09×

- FY2023: 0.09×

- FY2024: 0.10×

- FY2025: 0.10×

### moat: pass

- ROIC, median of available years: 35.4%

- ROIC, second-lowest year: 23.5%

- Typical minus recent gross margin: -0.4 pp

- Typical gross margin (annual median): 26.0%

- Recent gross margin (lower of latest and 3-year median): 26.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: 28.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 80.2%

- FY2017: 75.2%

- FY2018: 21.3%

- FY2019: 29.1%

- FY2020: 47.3%

- FY2021: 33.7%

- FY2022: 34.4%

- FY2023: 36.4%

- FY2024: 42.1%

- FY2025: 23.5%

### economics: pass

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 173B

- Net income, five-year total: CNY 174B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.2 pp

- Working capital / revenue, change between three-year averages: -8.2 pp

- Working capital / revenue, final three-year average: 8.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.99×

- FY2022: 0.97×

- FY2023: 1.02×

- FY2024: 0.99×

- FY2025: 0.99×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 75.2% vs 36.4%

- Per-share earnings: 2.26 to 5.42 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.8%

- Ordinary dilution, 5-year annual growth: 1.8%

- Market cap gain: CNY 413B

- Cumulative retained earnings: CNY 129B

- Diluted shares, 10-year annual growth: 1.8%

- Diluted shares, 5-year annual growth: 1.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.5%

- Per-share value change: CNY 3.16

- Per-share value, starting three-year median: CNY 2.26

- Per-share value, ending three-year median: CNY 5.42

- Buybacks concentrated in cheaper years (correlation): -0.40

- Average buyback yield: 1.0%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 54B

- Cumulative net income, 10 years: CNY 278B

- ROIC, first three-year median: 75.2%

- ROIC, last three-year median: 36.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 2.26

- FY2017: CNY 2.64

- FY2018: CNY 3.10

- FY2019: CNY 3.52

- FY2020: CNY 3.90

- FY2021: CNY 4.16

- FY2022: CNY 4.33

- FY2023: CNY 4.92

- FY2024: CNY 5.42

- FY2025: CNY 5.76

### accounting: pass

- Sloan accruals: -1.5%

- Receivables to sales index (DSRI): 0.42×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.21×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.25×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.0%

- FY2017: -2.9%

- FY2018: -2.9%

- FY2019: -4.8%

- FY2020: -0.6%

- FY2021: -1.7%

- FY2022: -1.2%

- FY2023: -5.0%

- FY2024: -3.6%

- FY2025: -1.5%

## Holders

## Price story

Price needs cash profits to grow 1.5% a year for ten years · "Europe's Heat Wave Could Lift Midea's Q2 AC Sales Over 20%" (finance.yahoo.com, Jul 2026) · sales +12.7%

Story as of 2026-10-16T09:59:57.391Z; price observation 2026-10-15.

Price needs cash profits to grow 1.5% a year for ten years

- 2026-07-06: Europe's Heat Wave Could Lift Midea's Q2 AC Sales Over 20% ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/europes-heat-wave-could-lift-160948502.html))

### Sales · FY2024–2025

sales +12.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 159B 

- FY2017: CNY 241B 

- FY2018: CNY 260B 

- FY2019: CNY 278B 

- FY2020: CNY 284B 

- FY2021: CNY 342B 

- FY2022: CNY 344B 

- FY2023: CNY 372B 

- FY2024: CNY 407B 

- FY2025: CNY 459B 

### Gross margin · FY2025

gross margin 26.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 26.9% 

- FY2017: 24.9% 

- FY2018: 27.6% 

- FY2019: 28.7% 

- FY2020: 25.1% 

- FY2021: 22.6% 

- FY2022: 24.3% 

- FY2023: 25.7% 

- FY2024: 26.4% 

- FY2025: 26.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in furnishings, fixtures & appliances; annual sales are CNY 458.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2025: revenue 458502407000; grossProfit 122512879000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000333.SHE: Midea Group Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of electrical appliance in China and internationally. The company operates in Smart Home System, Building Technology, Robotics and Automation, and Industrial Technology, and Other Innovative Business. It offers smart home products such as household air conditioners, central air conditioners, heating and ventilation systems, kitchen appliances, refrigerators, washing machines, and various small appliances; commercial and industrial solutions, including products and services, such as elevators, high and low voltage frequency converters, medical imaging products, robots, and automation systems; and other businesses including smart supply chain, sales, wholesale and processing of household appliance raw materials, as well as financial businesses, such as deposit taking, interbank lending, consumer credit, buyer credit, and financial leasing. Additionally, it provides Internet of Things solutions. Midea Group Co., Ltd. was founded in 1968 and is based in Foshan, China.

### Why customers stay

Margins ranged from 25.7% to 26.7% during 2023–25; it earns 35.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2023: grossProfit / revenue = 25.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2024: grossProfit / revenue = 26.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2025: grossProfit / revenue = 26.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); 10-year return on capital observations [[2016,0.802016539421938],[2017,0.7519437075755147],[2018,0.2130814225941118],[2019,0.29127526963220607],[2020,0.47334579957851997],[2021,0.33702669246959943],[2022,0.34393174003376864],[2023,0.36404697123540036],[2024,0.4211252859850224],[2025,0.23524082058742957]]; median 0.3539893556345845. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 4.1% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2016: growth capex 0; upkeep 2323430000; owner earnings 15938927000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2017: growth capex 0; upkeep 3218402000; owner earnings 20761164000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2018: growth capex 794395000; upkeep 4817456000; owner earnings 20230779000. Growth capex / owner earnings = 0.03926665404233816.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2019: growth capex 0; upkeep 3451856000; owner earnings 25927628000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2020: growth capex 0; upkeep 4656582000; owner earnings 27586643000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2021: growth capex 642505000; upkeep 6182852000; owner earnings 28266939600. Growth capex / owner earnings = 0.0227299102446874.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2022: growth capex 208158112.45292854; upkeep 7143956887.547071; owner earnings 28615974112.452927. Growth capex / owner earnings = 0.007274192785991638.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2023: growth capex 0; upkeep 6314051000; owner earnings 34345341200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2024: growth capex 15796000; upkeep 7823840000; owner earnings 38172185400. Growth capex / owner earnings = 0.00041380916063558676.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); FY2025: growth capex 1802194000; upkeep 9339695000; owner earnings 43565200400. Growth capex / owner earnings = 0.04136774268115154.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); Dividend observations: [[2016,5483035000],[2017,7092892000],[2018,8487224000],[2019,8553897000],[2020,12397175000],[2021,11052729000],[2022,13460821000],[2023,19310512000],[2024,22412079000],[2025,32530749000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 35.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000333.SHE SharesStats.PercentInsiders = 35.379 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1.5% yearly over ten years; actual growth was 11.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.568Z); Ten-year compound average after fade. Initial solved rate 0.008175619726274574. Price 84.71; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.9418596943983617 → FY2025 5.710165147896165. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 27.15 per share

- 2016-11: CNY 30.28 per share

- 2016-12: CNY 28.17 per share

- 2017-01: CNY 29.90 per share

- 2017-02: CNY 31.86 per share

- 2017-03: CNY 33.30 per share

- 2017-04: CNY 33.66 per share

- 2017-05: CNY 36.12 per share

- 2017-06: CNY 43.04 per share

- 2017-07: CNY 41.20 per share

- 2017-08: CNY 41.00 per share

- 2017-09: CNY 44.19 per share

- 2017-10: CNY 51.00 per share

- 2017-11: CNY 51.18 per share

- 2017-12: CNY 55.43 per share

- 2018-01: CNY 59.82 per share

- 2018-02: CNY 54.95 per share

- 2018-03: CNY 54.53 per share

- 2018-04: CNY 51.68 per share

- 2018-05: CNY 52.91 per share

- 2018-06: CNY 52.22 per share

- 2018-07: CNY 47.61 per share

- 2018-08: CNY 41.60 per share

- 2018-09: CNY 40.30 per share

- 2018-10: CNY 37.04 per share

- 2018-11: CNY 38.69 per share

- 2018-12: CNY 36.86 per share

- 2019-01: CNY 43.53 per share

- 2019-02: CNY 47.78 per share

- 2019-03: CNY 48.73 per share

- 2019-04: CNY 52.40 per share

- 2019-05: CNY 49.60 per share

- 2019-06: CNY 51.86 per share

- 2019-07: CNY 54.70 per share

- 2019-08: CNY 52.78 per share

- 2019-09: CNY 51.10 per share

- 2019-10: CNY 55.50 per share

- 2019-11: CNY 54.30 per share

- 2019-12: CNY 58.25 per share

- 2020-01: CNY 55.10 per share

- 2020-02: CNY 53.05 per share

- 2020-03: CNY 48.42 per share

- 2020-04: CNY 53.75 per share

- 2020-05: CNY 59.02 per share

- 2020-06: CNY 59.79 per share

- 2020-07: CNY 71.75 per share

- 2020-08: CNY 70.54 per share

- 2020-09: CNY 72.60 per share

- 2020-10: CNY 77.87 per share

- 2020-11: CNY 86.85 per share

- 2020-12: CNY 98.44 per share

- 2021-01: CNY 96.33 per share

- 2021-02: CNY 93.08 per share

- 2021-03: CNY 82.23 per share

- 2021-04: CNY 80.17 per share

- 2021-05: CNY 81.00 per share

- 2021-06: CNY 71.37 per share

- 2021-07: CNY 63.51 per share

- 2021-08: CNY 66.00 per share

- 2021-09: CNY 69.60 per share

- 2021-10: CNY 68.77 per share

- 2021-11: CNY 67.78 per share

- 2021-12: CNY 73.81 per share

- 2022-01: CNY 73.20 per share

- 2022-02: CNY 66.72 per share

- 2022-03: CNY 57.00 per share

- 2022-04: CNY 57.09 per share

- 2022-05: CNY 54.48 per share

- 2022-06: CNY 60.39 per share

- 2022-07: CNY 54.98 per share

- 2022-08: CNY 53.24 per share

- 2022-09: CNY 49.31 per share

- 2022-10: CNY 40.18 per share

- 2022-11: CNY 47.87 per share

- 2022-12: CNY 51.80 per share

- 2023-01: CNY 55.20 per share

- 2023-02: CNY 52.46 per share

- 2023-03: CNY 53.81 per share

- 2023-04: CNY 56.78 per share

- 2023-05: CNY 51.33 per share

- 2023-06: CNY 58.92 per share

- 2023-07: CNY 59.32 per share

- 2023-08: CNY 56.51 per share

- 2023-09: CNY 55.48 per share

- 2023-10: CNY 52.92 per share

- 2023-11: CNY 51.67 per share

- 2023-12: CNY 54.63 per share

- 2024-01: CNY 58.25 per share

- 2024-02: CNY 62.63 per share

- 2024-03: CNY 64.22 per share

- 2024-04: CNY 69.78 per share

- 2024-05: CNY 64.76 per share

- 2024-06: CNY 64.50 per share

- 2024-07: CNY 63.76 per share

- 2024-08: CNY 64.75 per share

- 2024-09: CNY 76.06 per share

- 2024-10: CNY 71.42 per share

- 2024-11: CNY 70.13 per share

- 2024-12: CNY 75.22 per share

- 2025-01: CNY 73.88 per share

- 2025-02: CNY 73.05 per share

- 2025-03: CNY 78.50 per share

- 2025-04: CNY 73.62 per share

- 2025-05: CNY 79.06 per share

- 2025-06: CNY 72.20 per share

- 2025-07: CNY 70.19 per share

- 2025-08: CNY 73.71 per share

- 2025-09: CNY 72.66 per share

- 2025-10: CNY 76.40 per share

- 2025-11: CNY 79.86 per share

- 2025-12: CNY 78.15 per share

- 2026-01: CNY 77.59 per share

- 2026-02: CNY 78.64 per share

- 2026-03: CNY 76.35 per share

- 2026-04: CNY 81.10 per share

- 2026-05: CNY 80.85 per share

- 2026-06: CNY 75.53 per share

- 2026-07: CNY 87.60 per share

- 2026-08: CNY 87.73 per share

- 2026-09: CNY 80.10 per share

- 2026-10: CNY 82.79 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 36.21 per share, central CNY 47.43 per share, high CNY 53.96 per share

- FY2017: low CNY 56.16 per share, central CNY 74.65 per share, high CNY 85.42 per share

- FY2018: low CNY 50.46 per share, central CNY 70.50 per share, high CNY 82.17 per share

- FY2019: low CNY 58.86 per share, central CNY 79.95 per share, high CNY 92.23 per share

- FY2020: low CNY 67.93 per share, central CNY 85.81 per share, high CNY 97.39 per share

- FY2021: low CNY 72.19 per share, central CNY 92.10 per share, high CNY 105.08 per share

- FY2022: low CNY 79.55 per share, central CNY 107.48 per share, high CNY 123.06 per share

- FY2023: low CNY 93.19 per share, central CNY 126.57 per share, high CNY 145.19 per share

- FY2024: low CNY 106.87 per share, central CNY 141.87 per share, high CNY 161.44 per share

- FY2025: low CNY 70.73 per share, central CNY 79.09 per share, high CNY 90.23 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:28.132Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.