Midea stock: Q3 revenue falls as reported profit gets investment lift

Midea Group delivered a mixed third-quarter performance on October 30, with lower revenue contrasting with stronger reported profit. The figures, published by Futu, point to a sharper divide between investment-related earnings and underlying operating momentum.

Revenue reached RMB 108.03 billion in the quarter, down 3.9 percent from a year earlier. Net profit attributable to shareholders rose 25.9 percent to RMB 14.95 billion, but profit after deducting non-recurring items fell 15.7 percent to RMB 9.19 billion. For investors, the combination means the headline increase did not translate into stronger adjusted earnings.

Investment Gains Lifted Reported Profit

Futu said fair-value gains on equity investments increased by RMB 5.47 billion year over year. That effect helped lift the quarterly net margin attributable to parent-company shareholders to 13.8 percent, up 3.3 percentage points. Gross margin, however, declined by 0.5 percentage points as higher raw-material costs and a stronger renminbi weighed on profitability.

The report also highlighted softer domestic demand for air conditioners after the fading effect of government trade-in subsidies and a high comparison base. Midea has been changing its direct-to-consumer distribution model in air conditioning and moderated short-term shipments during the transition. Futu cited estimated third-quarter domestic shipment changes of a 35 percent decline for air conditioners, a 5 percent increase for refrigerators and a 2 percent decline for washing machines.

Overseas And Industrial Units Add Support

Overseas markets provided a counterweight to the domestic slowdown. Midea is expanding its own-brand presence, retail network and specialized distribution channels, with Futu expecting solid export growth in the smart-home business. The company also benefits from exposure beyond consumer appliances.

Building Technologies, Robotics and Automation, and Industrial Technology were estimated by Futu to have posted year-over-year revenue changes of plus 8 percent, plus 9 percent and minus 14 percent, respectively. The figures support the investment case for a more diversified business mix, although they do not remove the near-term pressure on the consumer-facing franchise.

Cash Flow And Capital Returns Matter

Operating cash flow declined by RMB 17.15 billion year over year in the quarter, according to the report. Futu linked the reduction to the distribution-channel transformation, the cancellation of cold-season launch events and higher inventory stocking ahead of raw-material price increases. Inventory stood at RMB 56.63 billion at the end of the quarter, up 17.9 percent, while contract liabilities rose 13.0 percent to RMB 41.28 billion.

Management's capital-return profile remains part of the investor discussion. Futu said Midea has increased its payout ratio in recent years and continued share repurchases. The research view expects channel reforms to improve inventory turnover and retail efficiency over time, but also flags Chinese trade-in policy, the global economy and industry competition as key risks.

Midea stock traded at 11.18 euros on Lang & Schwarz at 10:06 CET on Tuesday, November 3, 2026. See the real-time quote of Midea stock for the current trading indication.

Midea Group at a Glance

• Company: Midea Group Co., Ltd.
• ISIN: CNE100006M58
• Current quote: 11.18 euros at Lang & Schwarz, November 3, 2026, 10:06 CET
• Third-quarter revenue: RMB 108.03 billion, down 3.9 percent year over year
• Reported net profit: RMB 14.95 billion, up 25.9 percent year over year
• Adjusted net profit: RMB 9.19 billion, down 15.7 percent year over year

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