Midea Group Co. Ltd.

Strong market position and extensive distribution network. Good profitability and operating efficiency. Concentration in the highly competitive home appliances market in China. Less established brand name in overseas markets than global peers'. Minimal debt leverage. Consistently positive free operating cash flow. Large surplus cash balance offsets impact of acquisitions on credit ratios. The stable outlook on Midea Group Co. Ltd. reflects our expectation that the company will maintain its strong market position in China's home appliances industry over the next 24 months and that Midea can effectively integrate recent acquisitions within its operations. We also expect Midea to maintain a debt-to-EBITDA ratio near zero and generate positive free operating cash flows, supported by the company's strong profitability, good working capital

...Outlook: Stable The stable outlook on Midea Group Co. Ltd. reflects our expectation that the company will maintain its strong market position in China's home appliances industry over the next 24 months and that Midea can effectively integrate recent acquisitions within its operations. We also expect Midea to maintain a debt-to-EBITDA ratio near zero and generate positive free operating cash flows, supported by the company's strong profitability, good working capital efficiency, and disciplined financial management....

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