Midea Real Estate Holding (3990.HK) Q2 2024 Earnings Report

Midea Real Estate Holding Limited reported QQ2 2024 results reflecting a material revenue contraction and a stretched liquidity position. Revenue came in at 12.57 billion CNY, down 30.8% year-over-year, while gross profit of 1.16 billion yielded a gross margin of 9.23%. Operating income was modest at 176 million, with net income of 188 million and an EPS of 0.13 CNY. The quarter’s results highlight ongoing headwinds from a softer Chinese property market and elevated inventory levels, which constrained profitability and cash generation. On the balance sheet, total assets stood at approximately 179.0 billion CNY and total liabilities at 131.85 billion CNY, leaving total equity around 25.20 billion CNY. The company carries a relatively high inventory burden (around 80.7 billion CNY) and a heavy debt load (total debt ~37.20 billion CNY), contributing to negative operating cash flow of about 1.93 billion CNY and negative free cash flow of roughly 1.96 billion CNY for the quarter. Liquidity metrics show a current ratio of 1.34, a quick ratio of 0.56, and a cash ratio of 0.11, underscoring capital market sensitivity to refinancing risk and inventory turnover dynamics. Compared with peers, Midea trades at a low-multi / earnings backdrop with a price-to-book around 0.36 and a dividend yield of ~5.4%. However, profitability and leverage discipline remain vulnerable given the sharp revenue decline and negative cash flow. The near-term trajectory will hinge on inventory clearance, stabilized property demand, and the ability to manage refinancing risk in a challenging macro environment.