High temperatures hitting many parts of Europe have triggered severe price gouging on Midea Group’s (0300) PortaSplit air conditioners, driving retail prices up to two to three times their original price in several European countries and boosting the company’s stock.
Midea closed at HK$84.05 on Monday, up 4.6 percent. On many European online retail platforms, the price of the PortaSplit has been inflated to around €900 (HK$8,051), and the product is currently sold out across most channels.
Europe has recently experienced several heatwaves, with its rate of temperature increase continuing to exceed the global average. Eastern Germany recorded 41.5°C on June 27, while Spain and other parts of Germany also exceeded 40°C.
Many older buildings and residences in Europe have long been bound by strict historical facade preservation regulations that prohibit drilling into exterior walls, preventing easy modifications. This makes traditional air conditioner installation notoriously difficult, with labor costs sometimes topping €1,000—far exceeding the price of the appliance itself.
Consequently, European consumers have historically been cautious about purchasing air conditioners, keeping the local penetration rate at a mere 20 percent.
To bypass these hurdles, Midea's PortaSplit portable split air conditioner, endorsed by Manchester City striker Erling Haaland, utilises a specialized window bracket to secure the outdoor unit. This design allows consumers to install the system themselves without tools or structural alterations.
Market analysts point out that under this trend, the penetration rate of Chinese home appliance brands in the European market is expected to increase further.
