The three giants of China's white goods industry—Midea, Gree, and Haier—recently released their mid-term performance reports for 2025. Although Gree's performance was below expectations, Midea and Haier continued to rise steadily. In particular, Midea not only delivered its best half-year report ever but also announced a mid-term dividend of 0.5 yuan per share, attracting a lot of follow.

Midea Group's revenue and profit growth in the first half of the year exceeded expectations. According to analysis by Nomura Orient International Securities, Midea's performance is not only attributed to the stimulus policies for domestic demand but also driven by the export rush effect. Coupled with the increase in foreign exchange gains, the performance is exceptionally impressive. As a result, on September 1, Midea Group's stock price also rose.

According to Midea Group's report on the Hong Kong Stock Exchange, the company achieved a revenue of 252.331 billion yuan in the first half of this year, a year-on-year increase of 15.7%; the net profit attributable to the parent company reached 26.014 billion yuan, a year-on-year surge of 25.0%. Among them, the smart home business, as the core segment, contributed 167.201 billion yuan, accounting for 66.3% of total revenue. Midea's strategic layout not only encompasses a variety of products but has also achieved good market performance globally.

In addition, in the first half of this year, Midea achieved a revenue of 145.139 billion yuan in mainland China, benefiting from the continuation of the "trade-in" policy, which showed considerable rise resilience in the domestic market. At the same time, Midea also performed outstandingly in overseas markets, with overseas revenue reaching 107.192 billion yuan, a year-on-year increase of 17.7%.

However, despite the double increase in profits, Midea's gross margin performance is slightly lacking. During the reporting period, Midea's overall gross margin decreased to 25.5%, mainly due to intensified competition in the domestic market and a slowdown in the pace of product structure upgrades.

For the market performance in the second half of the year, Midea faces some challenges. According to AVC, due to the overdrawn demand for some home appliances in 2025 last year, coupled with the potential weakening of consumer interest in national subsidies, the growth rate of the domestic market may slow down. At the same time, the high base due to policy stimulation will put certain pressure on the growth rate in the second half of the year. Nevertheless, Midea is expected to alleviate these challenges through growth in exports and B-end business, and its profitability may remain stable.

In any case, Midea's global strategic deployment, continuous high dividends, and the constantly expanding ToB business provide a solid foundation for future development. The company maintains steady growth, and there is still potential to enhance its valuation.

Please note that this article is for reference only and does not constitute investment advice. Past performance does not guarantee future results.