The Zhitong Finance App learned that Goldman Sachs released a research report saying that the revenue and net profit forecasts for the third quarter of 2026 were lowered by 3% to 11% and 3% to 19%, respectively, to reflect a situation where domestic demand for the third quarter was weaker than expected. Despite strong export performance, this situation has also affected the profitability of the covered companies. The bank currently expects the weighted average year-on-year decline in revenue and net profit (excluding one-time fair value earnings) for the third quarter of 2026 to be 5% and 11%, respectively (compared to 1% and 8% in the second quarter of 2026).
At the time of the release of the financial report, the bank expects investors to focus on: 1) domestic demand outlook for the fourth quarter of 2026 and beyond, and measures taken to deal with weak demand; 2) competitive trends and pricing trends; 3) overseas demand outlook and measures to further expand overseas markets; 4) cost trends and measures to deal with cost pressure; 5) development of new business lines; and 6) potential shareholder return enhancement plans.
According to the report, Midea Group's (00300) business showed some resilience in the third quarter, benefiting from healthy growth in overseas home appliances and 2B businesses, and its performance is expected to win among the covered white electronics companies. The bank expects that the Group's active adjustment of domestic channel strategies will help further reduce channel inventory and dealer burdens, and help increase market share in the retail market. Goldman Sachs maintains Midea Group's “buy” rating. The target price for H shares is HK$113; Midea Group (000333.SZ) has a target price of RMB 98 for A-shares.
In addition, Goldman Sachs lowered the earnings forecast per share for Hisense Home Appliances (00921) by 3% to 7% from 2026 to 2028, maintaining the target price of H shares at HK$26, and maintaining the target price of Hisense Home Appliances (000921.SZ) at RMB 29 yuan, giving it a “buy” rating. Goldman Sachs lowered Gree (000651.SZ) earnings estimates per share by 2% from 2026 to 2028, and maintained a target price of 41 yuan, with a “neutral” rating.