Core Viewpoint - Miniso's revenue for the first half of the year increased by 21.1% year-on-year to 9.39 billion yuan, driven by overseas markets and Top Toy [1] Group 1: Financial Performance - In Q2, revenue grew by 23.1% year-on-year, surpassing previous guidance [1] - Adjusted net profit increased by 3% year-on-year to 1.28 billion yuan, with Q2 adjusted net profit margin improving to 13.9% quarter-on-quarter, although still lower than the same period last year due to investments in overseas stores [1] Group 2: Future Guidance - Miniso raised its full-year revenue growth guidance to over 25%, with same-store sales in mainland China expected to achieve positive year-on-year growth [1] - The company anticipates adjusted operating profit for the year to reach between 3.65 billion and 3.85 billion yuan, corresponding to a year-on-year growth of 7% to 13% [1] Group 3: Analyst Adjustments - Based on the first half performance and recent sales trends, the firm slightly raised its 2025 revenue forecast by 1% but lowered the 2026 to 2027 revenue forecasts by 2% to 4% [1] - Due to more conservative profit margin assumptions, the adjusted net profit forecasts for 2025 to 2027 were reduced by 13% to 14%, to between 2.8 billion and 4 billion yuan [1] - The target price was raised from 46.42 HKD to 48.7 HKD, maintaining a "Buy" rating [1]

Group 1 - Miniso's stock increased by nearly 5% [1] - Lao Pu Gold and Xiaomi Group both rose by 2% [1] - Li Auto, Cha Bai Dao, and Guo Quan saw increases of over 1.5% [1] Group 2 - Bruker experienced a decline of over 13.5% [1] - Hou Shang A Yi fell by nearly 6% [1] - Leap Motor dropped by nearly 3.5% [1] - Pop Mart decreased by nearly 1% [1]

Core Viewpoint - Miniso Group is experiencing a significant increase in stock price, indicating positive market sentiment towards the company and its growth potential [1]. Group 1: Company Overview - Miniso Group is a leading global retailer in the home goods sector, operating under the brands Miniso and TOP TOY [1]. - As of 2021, the total GMV of Miniso's store network reached approximately RMB 18 billion (USD 2.8 billion), establishing it as the largest private label home goods retailer globally [1]. Group 2: Financial Performance - As of the mid-year report in 2025, Miniso reported total revenue of RMB 9.393 billion and a net profit of RMB 906 million [2].

Core Viewpoint - MINISO aims to enhance its position in the trendy toy market by developing its own intellectual property (IP) alongside international collaborations, as highlighted by the signing of nine artist IPs [2][3]. Group 1: Company Strategy - The chairman, Ye Guofu, emphasized that developing proprietary IP is a major strategic focus for MINISO this year and in the future, filling a critical gap in its business model [3][4]. - The company has seen significant revenue growth, achieving 9.39 billion yuan in revenue for the first half of the year, a 21.1% increase year-on-year, with adjusted net profit rising by 3% to 1.28 billion yuan [4]. - The TOPTOY brand has experienced rapid growth, with second-quarter revenue increasing by 80% to 400 million yuan, and a recent strategic financing round valuing it at approximately 10 billion HKD [4]. Group 2: Market Position and Competition - MINISO's collaboration with high-profile IPs like Chikawa and Harry Potter has led to rapid product launches and increased traffic, but the non-exclusive nature of these partnerships has resulted in significant competition and rising costs [7][8]. - The company's licensing expenses rose by 31.5% year-on-year to 240 million yuan in the first half of the year, which is a concern given the high costs associated with IP licensing [9]. - MINISO's MINISO LAND stores have shown strong performance, with an average monthly sales of 4 million yuan, indicating the potential for IP-driven retail experiences [10]. Group 3: Operational Efficiency - The company has implemented a strategy of closing smaller stores and opening larger ones, with over 200 stores exceeding 400 square meters, contributing significantly to sales [19][20]. - In North America, MINISO's revenue grew by over 80% year-on-year in the second quarter, with same-store sales also showing positive growth [22]. - The company plans to focus on improving the efficiency of its new stores, with a goal of enhancing the profitability of its operations [24]. Group 4: Financial Performance and Challenges - MINISO's operating profit margin was 16.5% in the first half of the year, down 2.8 percentage points from the previous year, primarily due to rising costs associated with new store openings [24]. - The investment in Yonghui Supermarket has resulted in a reported loss of 119 million yuan, adding pressure to MINISO's financial performance [25][26]. - The company anticipates ongoing losses from Yonghui's store closures, which may impact its overall financial results in the near term [26].

Core Viewpoint - Miniso's (09896.HK, MNSO.US) performance has shown a significant adjustment, with a notable decline in net profit for the first half of 2025, marking the first drop in four years [2][8]. Financial Performance - For the first half of 2025, Miniso reported revenue of approximately 9.4 billion yuan, a year-on-year increase of about 21%, while net profit attributable to shareholders was 906 million yuan, a decrease of 23% [2][6]. - The adjusted net profit for the same period was 1.279 billion yuan, reflecting a 3% increase year-on-year [6]. - In comparison, the revenue for the first half of 2024 was 7.759 billion yuan, with a net profit of 1.170 billion yuan, which had shown a growth of 16.45% [6]. Investment Impact - The decline in net profit has been attributed to losses from the investment in Yonghui Supermarket, where Miniso holds a 29.4% stake, resulting in a loss of 119 million yuan for the first half of 2025 [3][11]. - Yonghui Supermarket's performance has been underwhelming, with a reported revenue of 29.948 billion yuan, down 20.73%, and a net loss of 24.1 million yuan for the same period [10]. Expansion and Future Outlook - Miniso continues to expand rapidly, with a total of 7,612 stores globally as of June 30, 2025, an increase of 108 stores from the end of 2024 [3][13]. - The company has provided a positive outlook for the remainder of 2025, expecting revenue growth of no less than 25% and adjusted operating profit between 3.65 billion and 3.85 billion yuan [13]. IP Development - Miniso's CEO, Ye Guofu, is focusing on enhancing the company's IP capabilities, with the independent brand TOP TOY recently receiving strategic financing from Temasek, valuing it at approximately 10 billion HKD [4][16]. - TOP TOY has shown significant growth, with a revenue increase of 87% year-on-year for the second quarter, and the company anticipates a 70%-80% growth in revenue for the full year [16].

Core Viewpoint - MINISO has recorded a profit decline for the first time in four years, attributed mainly to losses from its investment in Yonghui Supermarket, yet management remains optimistic about operational performance and future growth prospects [1][3][5]. Financial Performance - For the first half of 2025, MINISO reported revenue of 9.393 billion yuan, a year-on-year increase of 21.1%, and operating profit of 1.546 billion yuan, up 3.4%. However, net profit fell to 906 million yuan, a decrease of 23.1% [1][3]. - The impact of Yonghui Supermarket's losses on MINISO's profit was 119 million yuan, primarily from the share of net losses [6]. Market Reaction - Following the release of the mid-year report, MINISO's stock price surged by 20.58% to 47.1 HKD per share, reaching a market capitalization of 58.528 billion HKD [3][5]. Growth Expectations - MINISO's management anticipates a revenue growth of 25%-28% for the third quarter of 2025, with same-store sales expected to show low single-digit growth. For the full year, revenue is projected to grow by no less than 25% [8][9]. Strategic Focus on IP - MINISO is intensifying its efforts in developing proprietary IP, aiming to replicate the success of Pop Mart. The company has signed contracts with nine promising original toy artists and plans to continue expanding its IP portfolio [11][12][14]. Store Expansion Strategy - As of June 2025, MINISO operates a total of 7,612 stores globally, with 4,305 in mainland China and 3,307 overseas. The company is focusing on a strategy of opening larger stores and enhancing the customer experience [8][17]. Comparison with Competitors - Unlike Pop Mart, which is cautious about store expansion, MINISO relies heavily on a partner-based growth model. This difference in strategy may affect the market perception of its IP and brand image [14][15].

Summary of Miniso (MNSO) Earnings Call Company Overview - **Company**: Miniso (MNSO) - **Market Cap**: $6.4 billion - **Enterprise Value**: $7.0 billion - **12m Price Target**: $25.30 (current price: $20.84, upside: 21.4%) [1][21] Key Financial Performance - **2Q25 Revenue Growth**: 23% year-over-year (yoy), exceeding guidance of 18-21% [1][33] - **Adjusted Operating Profit (OP) Growth**: 8.5% yoy, against guidance of flat/slight decline [1][36] - **Miniso China Sales Growth**: 14% yoy, beating expectations [1][33] - **Top Toy Revenue Growth**: 87% yoy, surpassing guidance [1][33] - **Gross Margin**: 44.3%, slightly below expectations [1][35] - **Operating Profit Margin (OPM)**: 17.2%, improved from 16.6% in 1Q25 [1][36] Future Outlook - **2025 Full Year Sales Guidance**: Revised to >25% yoy increase (previously >22.8%) [2][22] - **3Q25 Topline Growth Expectation**: 25-28% yoy with low-single-digit same-store sales growth (SSSG) [2][23] - **Store Expansion Plans**: 100-150 net openings in Miniso China and >500 overseas [22] Strategic Initiatives - **Large Store Strategy**: Focus on upgrading store formats to enhance brand awareness and capture diverse consumer demands [25] - **Miniso Land Stores**: Achieved average monthly sales of Rmb4 million [25] - **New US Stores**: 50% higher productivity compared to existing stores [27] - **In-house IP Cultivation**: Developing a dual-track IP strategy with both third-party and in-house IPs [28] - **Exclusive IPs**: Initial strong performance expected from new IPs like Yoyo [28] Market Performance - **US Market Growth**: Over 80% yoy sales growth in 2Q25, driven by improved store quality and localized management [30] - **Tariff Impact**: Manageable impact from tariff hikes due to effective inventory and supply chain management [31] Financial Revisions - **Earnings Revisions**: Adjusted net income for 2025E-27E revised up by 3-6% [21][42] - **New Price Targets**: Increased to US$25.3/HK$49 per ADR/H-share based on improved SSSG [21][42] Shareholder Returns - **Dividend Payout Ratio**: Announced at 50% for 1H25, implying a c.3% dividend yield [39][41] - **Share Buyback**: Approximately 1% of total shares in 1H25 [41] Conclusion - **Investment Recommendation**: Reiterate Buy rating based on solid performance, improving margins, and strategic initiatives to enhance growth and shareholder returns [21][42]

Core Insights - The retail industry is undergoing significant transformation as it enters a new phase of "rational consumption" and "quality upgrade," with Miniso leveraging its "high-quality low-price" strategy and global expansion to carve out a unique development path [1] - Miniso's impressive growth trajectory is reflected in its financial performance for 2024, with revenue increasing by 22.8% to 17 billion yuan, gross margin reaching a historical high of 44.7%, and net profit rising by 15.4% to 2.72 billion yuan [1] - The overseas market has shown remarkable performance, with revenue up 42% to 6.8 billion yuan, contributing 39.3% to overall revenue, and a net increase of 1,219 stores, including 631 overseas [1] Globalization Strategy - Miniso's globalization strategy has evolved from simple overseas store openings to a new phase of "regional deepening and precise penetration," aiming to exceed 3,000 overseas stores by 2025, covering over 100 countries and regions, with overseas revenue accounting for over 40% [2][4] - In the U.S., Miniso has established a dense retail network with 275 stores, offering high-cost performance home goods and trendy accessories that appeal to young consumers [2] - The Southeast Asian market, with a growing middle class, has seen strong demand for high-cost performance home goods, prompting Miniso to adopt a "regional center warehouse + local supply chain" model to enhance market responsiveness [4] Product Innovation and IP Strategy - Miniso's product innovation has progressed beyond low-cost homogeneity to focus on "precise demand and emotional value," with over 15,000 SKUs developed based on consumption data from over 50 million members [6] - The 2024 launch of the "smart home" series, which includes products like USB interface lamps, achieved sales of over 500 million yuan within three months, showcasing Miniso's market insight [6] - The deepening of IP strategy has significantly enhanced product value, with collaborations with over 80 IPs in 2024 leading to successful marketing events and increased customer engagement [8] Digital Operations - Digital capabilities have become the core support for Miniso's refined operations, establishing a comprehensive digital system from front-end to back-end, including a global supply chain management system in collaboration with Huawei Cloud [10] - The digital membership system has enhanced user stickiness, accumulating 50 million member data and enabling personalized services that significantly boost repurchase rates [11] - The launch of a "membership points mall" in 2024 has increased member activity to 65%, providing stable support for revenue growth [13] Future Outlook - Miniso's growth logic is becoming clearer, with continued overseas market penetration expected to unlock revenue potential, while the deepening of IP strategy will enhance product value [14] - The company aims to maintain flexibility in localization while injecting emotional value into its cost-performance offerings, positioning itself as a leading global IP design retail group [15]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6][15]. Core Insights - The company reported a total revenue of 4.97 billion yuan for Q2 2025, representing a year-on-year growth of 23.1%. For the first half of 2025, revenue reached 9.39 billion yuan, up 21.1% year-on-year [1]. - The company's gross profit margin improved to 44.3%, an increase of 0.4 percentage points year-on-year, while the adjusted net profit for Q2 was 0.692 billion yuan, reflecting a 10.6% increase year-on-year [1]. - The company has expanded its global store network, surpassing 7,900 stores worldwide, with a net increase of 108 stores in the first half of 2025 [2]. Revenue Breakdown - In Q2 2025, the domestic revenue in mainland China was 2.62 billion yuan, growing 13.6% year-on-year, while overseas revenue reached 1.94 billion yuan, marking a 28.6% increase [1]. - The TOPTOY segment achieved revenue of 0.4 billion yuan in Q2 2025, with an impressive growth rate of 87% [1]. Domestic Market Performance - The domestic same-store sales showed positive growth, with the number of franchisees reaching a historical high. The company anticipates continued same-store sales growth for the full year of 2025 [3]. - The company added 30 new stores in mainland China during Q2 2025, including 7 MINISO LAND stores, enhancing its presence in key cities [3]. International Expansion - The overseas revenue accounted for 39% of total revenue in Q2 2025, with significant growth in various regions, particularly in North America, where revenue increased by 69.7% [4]. - The company opened flagship stores in major global cities, reinforcing its brand presence internationally [4]. TOPTOY Growth - The TOPTOY segment is identified as a second growth engine, with a revenue increase of 87% in Q2 2025. The company has partnered with international IPs and signed contracts with several popular toy artists [5]. - The valuation of TOPTOY reached approximately 10 billion HKD after investment from Temasek, indicating strong market recognition [5]. Future Projections - The company is expected to achieve revenues of 21.2 billion yuan and 25.1 billion yuan for 2025 and 2026, respectively, with adjusted net profits projected at 2.8 billion yuan and 3.8 billion yuan [5].

Core Viewpoint - The company reported a strong Q2 performance with revenue growth of 23.1% to 4.97 billion yuan, exceeding previous guidance of 18-21% [1] - The improvement in fundamentals is attributed to the effectiveness of the large store strategy, positive same-store sales, and operational leverage optimization [1] Revenue Performance - Domestic revenue increased by 13.6%, with a net addition of 30 stores in the quarter; same-store sales turned positive, supported by improved average selling price (ASP) despite a slight decline in foot traffic [2] - Overseas revenue grew by 28.6%, with the U.S. market showing positive same-store sales, benefiting from the large store strategy [2] - TopToy's revenue surged by 87.0% to 400 million yuan, with same-store sales turning positive, indicating a positive trend [2] Profitability Metrics - Gross margin reached a new high, increasing by 0.6 percentage points to 44.3% due to the IP strategy and higher overseas revenue contribution [2] - Operating profit margin (OPM) decreased by 1.8 percentage points to 16.8%, primarily due to the lower-margin overseas direct sales and increased TopToy revenue; however, the decline was less severe than in Q1 [2] - Adjusted net profit margin fell by 1.6 percentage points to 13.9% after accounting for the impact of Yonghui Investment [2] Strategic Initiatives - The company is shifting its growth strategy from rapid store expansion to enhancing store efficiency through large store openings and refined operations, which has been successfully implemented domestically and is being replicated overseas [1][3] - The focus on proprietary IP development aims to integrate product, channel, and operational strategies, leveraging large stores as platforms for IP promotion [1][3] Future Outlook - The company expects annual revenue growth of over 25% and adjusted operating profit to reach between 3.65 billion and 3.85 billion yuan [3] - Revenue forecasts for 2025-2027 have been raised by 3.7% to 21.47 billion, 25.66 billion, and 30.36 billion yuan respectively, reflecting improved same-store performance and the effectiveness of the large store strategy [3] - The target price has been adjusted to 52.46 HKD based on a 20x PE ratio for 2025, reflecting the company's performance inflection point and effective operational strategies [3]