000333 (Midea Group Co Ltd) vs Shanghai Composite Comparison

000333

Shanghai Composite

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000333

Shanghai Composite

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000333

Shanghai Composite

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Shanghai Composite

000333

600690

000651

WHR

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Midea Group Co Ltd
Glance View

Market Cap

574.3B CNY

Industry

Consumer products

In the bustling landscape of global appliance manufacturing, Midea Group Co., Ltd. has emerged as a formidable force, weaving innovation into the fabric of everyday living. Founded in 1968 in Guangdong, China, Midea’s transformation over the decades reflects a tale of strategic expansion and diversification. It began as a humble workshop producing bottle lids, but gradually, it burgeoned into a diversified giant with a presence in various sectors such as HVAC systems, home appliances, robotics, and industrial automation systems. Midea's primary revenue stream flows from its home appliance segment, where it dominates in the sale of air conditioners, refrigerators, washing machines, and kitchen appliances. The company deftly leverages its large-scale manufacturing capabilities, state-of-the-art R&D, and extensive distribution networks to deliver products that epitomize quality and innovation, catering to the needs of millions of households around the globe. Midea's business model, akin to a symphony, is composed of multiple harmonious elements, ensuring a constant flow of income. The company's forward-thinking approach to research and development has enabled its success, with substantial investments geared towards enhancing energy efficiency and smart home technologies. Collaborations and acquisitions, such as its notable purchase of the German robotics company KUKA, exemplify its commitment to venturing beyond traditional home appliances, embedding itself deeper into industrial automation. This acquisition marks a significant leap in its journey toward becoming a juggernaut of technological innovation. Midea’s strategic focus on both consumer-centric and industrial applications helps maintain a balanced portfolio that shields it from economic fluctuations in any single market segment. Such strategic maneuvering has established Midea as a stalwart in the appliance industry while setting the stage for its continual evolution in an ever-changing technological landscape.

View Midea Group Co Ltd Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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000333

vs

Shanghai Composite

Stocks Performance
000333 vs Shanghai Composite

Performance Gap
000333 vs Shanghai Composite

Performance By Year
000333 vs Shanghai Composite

Competitors Performance
Midea Group Co Ltd vs Peers

Midea Group Co Ltd
Glance View

Company

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Tools

Stocks

CN		Haier Smart Home Co Ltd SSE:600690	Add
CN		Gree Electric Appliances Inc of Zhuhai SZSE:000651	Add
US	S	Sharkninja Inc NYSE:SN	Add
US		Whirlpool Corp NYSE:WHR	Add
CN		Zhejiang Supor Co Ltd SZSE:002032	Add
CN		Hisense Home Appliances Group Co Ltd SZSE:000921	Add
CN		Beijing Roborock Technology Co Ltd SSE:688169	Add
CN	H	Hangzhou Greatstar Industrial Co Ltd SZSE:002444	Add
FR		SEB SA PAR:SK	Add
IT		De' Longhi SpA MIL:DLG	Add

CN		Haier Smart Home Co Ltd SSE:600690	Select
CN		Gree Electric Appliances Inc of Zhuhai SZSE:000651	Select
US	S	Sharkninja Inc NYSE:SN	Select
US		Whirlpool Corp NYSE:WHR	Select
CN		Zhejiang Supor Co Ltd SZSE:002032	Select
CN		Hisense Home Appliances Group Co Ltd SZSE:000921	Select
CN		Beijing Roborock Technology Co Ltd SSE:688169	Select
CN	H	Hangzhou Greatstar Industrial Co Ltd SZSE:002444	Select
FR		SEB SA PAR:SK	Select
IT		De' Longhi SpA MIL:DLG	Select

	Johnson & Johnson NYSE:JNJ	144.19 USD 0.12%
	Berkshire Hathaway Inc NYSE:BRK.A	681 460 USD 0.88%
	Bank of America Corp NYSE:BAC	44.81 USD 1.17%
	Mastercard Inc NYSE:MA	521.36 USD -0.2%
	UnitedHealth Group Inc NYSE:UNH	513 USD 1.68%
	Exxon Mobil Corp NYSE:XOM	107.86 USD 0.51%

000333 vs Shanghai Composite

Stocks Performance 000333 vs Shanghai Composite

Performance Gap 000333 vs Shanghai Composite

Performance By Year 000333 vs Shanghai Composite

Competitors Performance Midea Group Co Ltd vs Peers

Midea Group Co Ltd Glance View

Company

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Tools

Stocks

000333

vs

Shanghai Composite

Stocks Performance
000333 vs Shanghai Composite

Performance Gap
000333 vs Shanghai Composite

Performance By Year
000333 vs Shanghai Composite

Competitors Performance
Midea Group Co Ltd vs Peers

Midea Group Co Ltd
Glance View