-- Midea's (SHE:000333) net profit edged up in the first quarter amid weakening demand for white goods in China.
The appliance manufacturer's net profit attributable to shareholders in the first quarter rose 2% to 12.7 billion yuan from 12.4 billion yuan a year earlier, according to a Hong Kong filing on Thursday.
Earnings per share increased 3.7% year on year to 1.69 yuan from 1.63 yuan. Visible Alpha analysts forecast EPS at 1.65 yuan.
Profit from nonrecurring gains slid 14% to 11 billion yuan from 12.7 billion yuan. The decline could mean underlying earnings pressure despite steady cash from operations, TipRanks said in a report Thursday.
Operating revenue was 131.1 billion yuan, 2.6% higher than 127.8 billion yuan in the previous year and higher than Visible Alpha analysts' forecast of 131 billion yuan.
Total revenue grew to 131.6 billion yuan from 128.4 billion yuan.
The top line at the company's building technology operations grew 10% to 10.8 billion yuan, while its robotics and automation revenue grew 12% to 8.2 billion yuan.
However, industrial technology revenue slid 12% to 6.8 billion yuan.
Domestic sales growth may have outgrown overseas performance during the quarter, CLSA reported.
Demand for white goods from China may have declined in March compared with a rebound in January and February, according to a note by investment bank Jefferies released earlier in April.
The appliance maker' exports may have seen pressure due to slowness in developed markets, the investment bank said.
Looking forward, as domestic demand reins on the growth of domestic sales, overseas sales could rise in high single digits on a lower base, the financial services company said.
Midea's upcoming cooperation with Electrolux in the refrigeration and fabric care sectors could help the Chinese company's foray into the U.S. market, CLSA said.
Shares rose 1% in Hong Kong during afternoon trading on Thursday.