A-shr CFO Salary Ranking Released; MIDEA GROUP's Zhong Zheng Tops w/ Annual Salary RMB9.46M

The analyst rating for MIDEA GROUP was set at "Outperform" due to several factors highlighted in the CLSA research report. The report noted an increase in ex-factory prices, suggesting that the average selling price across the industry is expected to rise. Despite acknowledging weak domestic demand and lowering net profit forecasts for 2025-2027 by 1-3%, the broker raised the target price for MIDEA GROUP's H-shares from $90 to $95, based on a historical average price-to-earnings (PE) ratio of 12.5x. Additionally, there is potential for overseas sales to exceed expectations due to OEM orders, contributing to a more optimistic outlook for the company.

CMBI has issued an Equalweight rating for China's 2026 discretionary consumption sector due to a cautious outlook influenced by several headwinds. These include the retreat of national and delivery subsidies, a slowdown in export momentum, and job reductions linked to the widespread application of AI. While the broker anticipates overall retail sales growth to be around 3.5%, slightly slower than the previous year's 4%, they also recognize some positive factors such as the delayed Spring Festival, extended holidays, potential recovery in the real estate sector, and a thriving stock market. However, they expect stock prices in the discretionary consumption sector to face pressure in the first half of 2026, with a potential rebound in the second half. The report categorizes investment opportunities into different types of consumption, favoring survival, compensatory, and hedging/defensive consumption, while being less optimistic about large-scale consumption.