Core view: combing the specific projects and progress of Midea end B
On December 30, 2020, Midea Group Co.Ltd(000333) repositioned the five business segments and established the b-end business as the second engine. A year later, the market has a preliminary understanding of the strategic planning and objectives of Meimei, but due to the wide coverage of b-end business and new fields involved, investors still have some doubts about the specific implementation path and landing direction of the company’s performance planning.
With the increasing importance of b-end segment, Midea Group Co.Ltd(000333) while strengthening the operation and expansion of relevant businesses, it has targeted to improve the disclosure frequency of b-end business. This week, we systematically sorted out the b-end business progress and benchmarking projects publicly disclosed by Midea (mainly for building technology and industrial technology with clear performance increment) to show investors the progress status and development context of Midea Group Co.Ltd(000333) b-end business.
① building technology: the company has strong competitiveness in the fields of multi unit, high-efficiency machine room and overall solution, which can better match the equipment needs of the subject project, such as accurate temperature control, green energy saving, high efficiency and reliability.
In terms of project categories, Midea HVAC equipment won the bid for a series of venues for the Beijing Winter Olympic Games and major urban rail transit, showing the company’s cooperation details at the level of government public construction projects. The cooperation with Dubai World Expo, Hilton, intercontinental and other international projects reflects the global competitiveness and stability of Midea HVAC products. In addition, the implementation of agriculture, forestry, animal husbandry and fishery, plant HVAC and other projects also shows the potential incremental direction of the company’s building projects.
② Industrial Technology: on February 16, 2022, the foundation laying ceremony of Midea’s new strategic base for new energy vehicle parts was opened, with a total investment of about 11 billion yuan and a planned land area of 458 mu in phase I. It mainly produces power steering motor, new energy vehicle electric compressor, new energy vehicle drive motor and other products to create thermal management, main drive Research and development center and National Laboratory of auxiliary / intelligent driving system. After the completion of the project, it can form an annual production capacity of 60 million sets and realize an annual output value of 40 billion yuan
Investment suggestions: three main lines are laid out in the household appliance sector. Companies: 1) grasp the repair of undervalued value and recommend Midea Group Co.Ltd(000333) ( Midea Group Co.Ltd(000333) . SZ), Haier Smart Home Co.Ltd(600690) ( Haier Smart Home Co.Ltd(600690) . SH), Hangzhou Robam Appliances Co.Ltd(002508) ( Hangzhou Robam Appliances Co.Ltd(002508) . SZ), Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) ( Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) . SZ). 2) Grasp the sub industries with high prosperity. It is suggested to focus on the performance of elastic targets, and recommend Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) ( Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) . SZ) and Beijing Roborock Technology Co.Ltd(688169) ( Beijing Roborock Technology Co.Ltd(688169) . SH). 3) Grasp the new opportunities of second tier leaders and recommend Hisense Home Appliances Group Co.Ltd(000921) ( Hisense Home Appliances Group Co.Ltd(000921) . SZ) and Kingclean Electric Co.Ltd(603355) ( Kingclean Electric Co.Ltd(603355) . SH).
Risk tips: the risk of rising raw material prices, the risk of less than expected demand, the risk of repeated epidemic, the risk of chip shortage, the risk of rising prices, the risk of exchange rate fluctuations, etc.
