Midea Group Co.,Ltd. (HKEX: 00300) shares have risen over 4% in trading, driven by strong sales of its portable air conditioners in Europe amid a severe heatwave. At the time of writing, the stock is up 4.36% to HK$86.2, with a turnover of HK$725 million.

The company's PortaSplit mobile split air conditioner has seen exceptional demand across Europe, where countries like Spain, France, and Germany are experiencing temperatures exceeding 35°C. Social media platforms are filled with posts from Europeans sharing their experiences of scrambling to purchase air conditioning units.

Following sell-outs at several offline retail stores and e-commerce channels, the PortaSplit model has reportedly been resold by local scalpers for as high as €1,999, a price 1.5 times its official retail value. In a response to media inquiries, the company stated that sales of the PortaSplit this year have already doubled compared to the full-year total for last year, with shipments surpassing 200,000 units.

Analysts at Citi anticipate that the widespread heatwave across Europe will deliver a positive surprise for Midea Group's financial performance. The bank also forecasts that the group's sales in 2026 will achieve mid- to high-single-digit year-on-year growth. Furthermore, it expects the total cash return to shareholders, including dividends and share buybacks, to reach 100% of net profit.

Citi has assigned a "Buy" rating to Midea Group's H-shares, with a target price of HK$126.3.