Group 1 - Miniso's Hong Kong stock fell over 16%, marking the largest intraday drop in seven weeks [1] - Jefferies reported that the company's adjusted net profit for the first quarter did not meet expectations [1]

Group 1 - The Hang Seng Index opened down 0.4%, with the Hang Seng Tech Index falling 0.32%. Miniso's stock dropped nearly 15%, with the company's first-quarter profit at 417 million yuan, a 29% decrease year-on-year [1] - Hong Kong stocks have shown a strong upward trend this year, attracting significant interest from A-share fund managers, particularly in new technology, new consumption, and pharmaceutical sectors [1] - Morgan Stanley analysts believe that Hong Kong stocks have high allocation value in the medium to long term, despite the need to monitor fluctuations in overseas markets and domestic demand [1] Group 2 - Yu Huan, managing the Great Wall Health Consumption Fund, emphasizes the importance of monitoring industries with improved competitive landscapes and low valuations in Hong Kong's tech and consumer sectors [2] - The Hong Kong stock market has become the best-performing tech market globally this year, driven by solid fundamentals and low valuations, with southbound funds being the main source of buying [2] - The Hong Kong IPO market is expected to see a significant recovery in 2025, providing a crucial window for domestic companies to raise foreign capital [2] Group 3 - CITIC Securities reports that the recent surge in A-share companies going public in Hong Kong is driven by strategic overseas expansion, regulatory conveniences, and improved liquidity in the Hong Kong market [3] - The Hong Kong government has implemented several supportive policies to enhance market liquidity and attractiveness, including lowering stamp duties and optimizing trading mechanisms [3] - The appeal of dividend assets in the Hong Kong market is expected to grow due to anticipated reforms and improvements in international liquidity, making them attractive for medium to long-term investments [3]

智通财经5月26日电，截至发稿，名创优品(09896.HK)跌14.79%。消息方面，该公司在近日公布一季度 业绩，其中收入同比增加19%至44亿元，经调整归母净利润同比下跌5%至5.87%。中金公司指出，这一 业绩低于该券商的预期。 名创优品跌近15% 一季度业绩低于预期 ...

Investment Rating - The report maintains an "OUTPERFORM" rating for the company with a target price of USD 22.50, reflecting a potential upside from the current price of USD 18.29 [2][10]. Core Insights - The company reported a revenue of RMB 4.43 billion in 1Q, representing a 19% year-over-year increase, while adjusted net profit decreased by 5% to RMB 587 million [3][16]. - Domestic revenue was RMB 2.49 billion, up 9% year-over-year, with a net closure of 111 domestic stores [3][16]. - Overseas revenue reached RMB 1.59 billion, a 30% increase year-over-year, with a net addition of 95 overseas stores [5][16]. - The gross profit margin (GPM) improved to 44.2%, up 0.8 percentage points year-over-year, while the adjusted net profit margin (NPM) was 13.3%, down 3.3 percentage points [8][16]. Financial Projections - Revenue projections for 2025-2027 are RMB 20.9 billion, RMB 24.9 billion, and RMB 29.2 billion, respectively, with adjusted net profits expected to be RMB 2.76 billion, RMB 3.66 billion, and RMB 4.57 billion [10][17]. - The company anticipates a net store opening of 200-300 in China and 500-600 overseas in 2025 [4][5]. Cost Structure and Profitability - The sales expense ratio increased to 23.1%, up 4.4 percentage points year-over-year, primarily due to expenses related to direct stores [8][16]. - The adjusted net profit margin is projected to improve gradually, with expectations of 13.2%, 14.7%, and 15.6% for 2025-2027 [10][14]. Market Position and Strategy - The company is focusing on high-quality development and channel upgrades in the domestic market, with a strategy of opening larger stores while closing smaller ones [4][9]. - In the overseas market, the company aims to enhance efficiency and reduce costs, particularly in the U.S. market, while replicating successful domestic strategies [5][9].

Group 1 - The Hang Seng Index opened down 0.40% and the Tech Index opened down 0.32% [1] - Miniso Group (09896.HK) opened down 14.79% following a significant decline in profit [1] - The company's profit for the first quarter was 417 million yuan, representing a 29% decrease compared to the same period last year [1]

名创优品开跌14.79%，公司第一季度期内利润为4.17亿元，较上年同期下降29%。 ...

Core Viewpoint - Miniso's revenue is increasing, but profits are declining, indicating potential challenges in maintaining profitability despite growth in store openings [1][2]. Financial Performance - In Q1 2025, Miniso reported revenue of 4.427 billion yuan, a year-on-year increase of 18.9% [2]. - Operating profit for the same period was 710 million yuan, down 4.51% year-on-year [2]. - Net profit for Q1 2025 was 417 million yuan, a decline of 28.92% compared to the previous year [2]. - Adjusted net profit was 587 million yuan, reflecting a decrease of 4.81% year-on-year [2]. Store Expansion and Performance - Miniso opened a total of 978 new stores in the past year, bringing the total to 7,768 stores as of March 31, 2025 [3]. - The average sales performance of new stores opened in Q1 2025 improved by 27% compared to the same period in 2024 [3]. - The company is focusing on the MINISO LAND store format, with 8 locations opened and 15 more in preparation [3]. International Growth - Revenue from overseas markets grew by 30.3%, contributing an additional 3 percentage points to total revenue [4]. - Miniso aims to enhance collaboration with international partners to improve operational efficiency and store models [4]. Collaboration with Yonghui Supermarket - Miniso's CFO reported that Yonghui Supermarket has already closed 78 stores and plans to close between 250 to 350 stores in 2025 [5][6]. - The restructuring of Yonghui Supermarket is expected to improve profitability through enhanced cost and management efficiency [6]. Yonghui Supermarket's Financial Situation - Yonghui Supermarket reported a revenue of 17.479 billion yuan in Q1 2025, a decline of 19.32% year-on-year [7]. - The company has faced significant losses over the past four years, totaling over 9.5 billion yuan [7].

Investment Rating - The report maintains a "Buy" rating for MINISO, indicating a positive outlook for the company's performance in the market [5]. Core Insights - MINISO's same-store sales have significantly improved, driving accelerated revenue growth, with a notable performance from TOP TOY, which achieved a revenue increase of 58.9% [5]. - The company reported a total revenue of 4.43 billion RMB in Q1 2025, reflecting an 18.9% year-on-year growth, although adjusted net profit fell by 4.8% to 587 million RMB [3][5]. - The overseas expansion continues to contribute positively, with overseas store count reaching 3,213, leading to a 30.3% increase in overseas revenue [5]. Financial Data and Earnings Forecast - Revenue projections for MINISO are as follows: - 2023: 13.839 billion RMB - 2024: 16.994 billion RMB - 2025E: 20.979 billion RMB - 2026E: 24.765 billion RMB - 2027E: 28.718 billion RMB - The expected growth rates for revenue are 39.4% in 2023, 22.8% in 2024, and 23.4% in 2025 [4][6]. - Adjusted net profit forecasts are: - 2025E: 2.845 billion RMB - 2026E: 3.343 billion RMB - 2027E: 3.794 billion RMB [4][6].

Summary of MINISO's Conference Call Company Overview - **Company**: MINISO (名创优品) - **Industry**: Retail, specifically in the consumer goods sector Key Financial Performance - **Q1 2025 Revenue**: 44.3 billion RMB, a 19% year-over-year increase, exceeding expectations of 15% to 18% growth [2][9] - **Brand Revenue**: 40.9 billion RMB, up 16.5% year-over-year [2][9] - **Domestic Market Contribution**: 24.9 billion RMB, a 9% increase [9] - **Overseas Market Contribution**: 15.9 billion RMB, a 30% increase, with overseas revenue share rising to 36% [2][9] - **Gross Margin**: 44.2%, up 1 percentage point year-over-year [2][10] - **Adjusted EBITDA Margin**: 23.4% [10] - **Adjusted Net Profit Margin**: 16.6% [10] Domestic Market Insights - **Same-store Sales**: Decline has narrowed significantly, with positive growth in first and second-tier cities, while northern regions still face challenges [3][13] - **Management Strategies**: Focus on enhancing operational quality through strategic management improvements and data-driven insights [3][6] - **Store Strategy**: Closing inefficient small stores while opening larger, more efficient ones [10][24] Overseas Market Strategies - **North America**: Focus on improving store operation quality and cost control, with a 30% increase in overseas revenue [5][9] - **Supply Chain Adjustments**: Increasing local inventory and sourcing to reduce reliance on imports, with local sourcing in the U.S. nearing 40% [4][16] - **Market Expansion**: Plans to open new stores in key U.S. states to enhance customer satisfaction and operational efficiency [18] Product and IP Strategy - **IP Development**: Continued focus on proprietary IP and interest-driven consumption, with new product lines like the "吉福特熊" expected to generate 4-5 billion RMB in sales [2][19] - **Product Innovation**: Introduction of new product series such as the Spring Festival series and Sakura series, which have received positive market feedback [3][19] Future Outlook - **Growth Strategy**: Emphasis on same-store sales growth while dynamically adjusting new store openings based on performance [25] - **Financial Management**: Commitment to shareholder returns through dividends and share buybacks, with a dividend of 740 million RMB announced [12][8] - **Cost Management**: Focus on improving operational efficiency and managing expenses to ensure healthy profit growth [12][10] Additional Insights - **TOP TOY Performance**: The TOP TOY brand saw a 59% revenue increase in Q1 2025, with self-selected products accounting for over 40% of sales [7] - **Franchisee Confidence**: Increased investment returns for franchisees, with new store openings primarily operated by them, indicating strong brand confidence [14][15] - **Third-party Product Strategy**: Careful selection of third-party products to maintain gross margins while enhancing customer experience [21][22][23] This summary encapsulates the key points from MINISO's conference call, highlighting financial performance, market strategies, product innovation, and future outlook.

Investment Rating - The report maintains a "Buy" rating for Miniso (MNSO) with a 12-month price target of $23.40, indicating an upside potential of 5.5% from the current price of $22.19 [1]. Core Insights - Miniso reported a 19% year-over-year revenue growth in 1Q25, slightly above guidance, but adjusted operating profit declined by 5% year-over-year, missing expectations due to higher contributions from lower-margin direct-to-consumer (DTC) sales and new store openings [1][2]. - Management remains optimistic about top-line growth for 2025, but has tempered expectations regarding margins due to the ongoing transition to a DTC model [1][2]. - The company aims for a positive same-store sales growth (SSSG) recovery, with management targeting double-digit growth in China and a 40% year-over-year increase in overseas markets [19][20]. Summary by Sections Earnings Review - In 1Q25, total sales reached Rmb 4.4 billion, reflecting a 19% year-over-year increase, with overseas sales growing by 30% year-over-year [29]. - The adjusted net profit was Rmb 587 million, which was 6% lower than expectations, primarily due to lower-than-expected operating profit [32][34]. Financial Forecasts - Revenue forecasts for 2025-2027 have been adjusted slightly downward, with total sales projected at Rmb 20.55 billion for 2025, reflecting a 20.9% growth [37]. - The adjusted net profit for 2025 is now estimated at Rmb 2.22 billion, a 14.7% decrease from previous estimates [37]. Operational Insights - The company closed 111 stores in Mainland China during 1Q25, which was below expectations, while opening 95 stores overseas [31]. - Management highlighted that the DTC model will continue to exert pressure on margins in the near term, but expects improvements in operational efficiency to mitigate this impact [19][20]. Market Strategy - Miniso's strategy includes a focus on increasing the number of larger format stores and enhancing same-store sales productivity, with plans to open fewer stores than previously targeted [25]. - The company is also investing in its IP strategy, which has shown positive market feedback, particularly in the toy category, which accounted for 30% of sales in 1Q25 [27][28].