Morgan Stanley: Midea Group Co., Ltd (00300) rated as "overweight" with a target price of 94 Hong Kong dollars.

Morgan Stanley released a research report stating that the stock price of Midea Group Co., Ltd (00300) is expected to rise relative to the index in the next 45 days. The target price for Midea is set at HK$94, with an investment rating of "hold". The National Development and Reform Commission announced details of the 2025 consumer electronics trade-in program, expanding the coverage and increasing the number of air conditioners eligible for subsidies. The report indicates that the above policy details are slightly better than expected, especially for air conditioners. Companies like Midea and other home appliance enterprises are expected to benefit more and see a positive response in their stock prices in the near future. The forecasted price-to-earnings ratio (P/E) for Midea's A/H shares in 2025 is approximately 13 times, slightly lower than the average level since 2017 for Midea A shares, but slightly higher than the average level since the H shares were listed in September 2024. The bank believes this is attractive, as they estimate Midea's earnings per share to grow at a compounded annual rate of at least 10% from 2024 to 2026.