This report does not constitute a rating action. Overview Key strengths Key risks World's largest home appliance manufacturer Highly competitive markets Good product portfolio with strong positions in air conditioners and small appliances Rising raw material cost pressure amid Middle-East conflict Sizable net cash position Overseas expansion will support growth over the next two years. We expect Midea Group Co. Ltd. to more than offset weakness in the appliances segment in China with growth overseas. Operations abroad will benefit from localized product innovation and an expanding manufacturing and supply chain footprint. Midea's ability to offer tailored, competitively priced products--such as easy-to-install window air conditioners that address regulatory and architectural challenges--has helped it gain traction in Europe. Price hikes of key
