Midea Group HK IPO Valuation Analysis

• We would subscribe to the HK offering of Midea Group due to its attractive valuations, strong fundamentals, and meaningful price discount relative to the A shares.

• We believe a premium valuation relative to the comps is appropriate for Midea Group due to its higher sales growth, EBIT margin, and ROE.

• Pricing of this offering is expected to be completed on 13 September and listing on 17 September.