Investment Rating - The report maintains a "Buy" rating for Miniso with a target price of HKD 51.21 [7][8]. Core Views - Miniso plans to acquire a 29.4% stake in Yonghui Supermarket for approximately RMB 62.7 billion, becoming the largest shareholder, which is expected to enhance its offline retail strategy [2]. - The acquisition is seen as a strategic move to leverage Yonghui's resources and improve supply chain efficiency, while Miniso will continue to focus on its core business and rapid store expansion [5][4]. - Financial projections for Miniso indicate adjusted net profits of RMB 28.8 billion, RMB 36.8 billion, and RMB 46.0 billion for 2024, 2025, and 2026 respectively, with a maintained PE ratio of 20x for 2024 [2][6]. Summary by Sections Acquisition Details - Miniso announced the acquisition of Yonghui's shares from three entities, which will be executed through its wholly-owned subsidiary, Jun Cai International [2]. - The acquisition is expected to create synergies in product offerings, channel operations, and supply chain management [5]. Financial Position - As of the first half of 2024, Miniso has RMB 62.3 billion in cash, indicating a strong financial position to support the acquisition [4]. - The report projects significant revenue growth, with expected revenues of RMB 17.321 billion in 2024, reflecting a 50.97% increase from 2023 [6]. Market Outlook - The report expresses optimism about the growth potential of the offline retail sector in China, particularly with Yonghui's strong cash flow and market position [4]. - Miniso aims for a compound annual growth rate of no less than 20% in revenue from 2024 to 2028, with plans to open 900 to 1100 new stores annually [5].

Core Viewpoint - MINISO Group has announced the acquisition of 29.4% of Yonghui Superstores for approximately RMB6.3 billion, positioning itself as the largest single shareholder of Yonghui upon completion of the transaction [1][2]. Company Overview - MINISO Group is a global value retailer known for trendy lifestyle products featuring IP design, with a significant store network established since its inception in 2013 [9]. - Yonghui Superstores, a leading retail chain in China, operates around 850 supermarkets and generated approximately RMB78.6 billion in revenue in 2023 [2]. Transaction Details - The share purchase agreements involve Guangdong Juncai International Trading Co., Ltd., a wholly owned subsidiary of MINISO, acquiring shares from various sellers, including subsidiaries of JD.com and DFI Retail Group [3][4]. - The per share price for the acquisition is set at RMB2.35, reflecting a 3.1% premium over Yonghui's closing price on September 20, 2024 [4]. - Funding for the transaction will come from a mix of internal resources and external financing [4]. Strategic Implications - The acquisition is expected to enhance MINISO's growth potential and long-term value for shareholders, allowing for the development of higher-quality self-branded products and improved supply chain collaboration with Yonghui [5]. - The company aims to achieve a compound annual growth rate of no less than 20% in its core business over the next five years, excluding the impact of this transaction [5]. Regulatory Considerations - The transaction is subject to customary closing conditions, including antitrust clearance and shareholder approval, with an expected closing in the first half of 2025 [6].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 51.21 [8][9]. Core Views - The report highlights the company's undervaluation and high return potential, particularly in the context of the anticipated interest rate cuts, which are expected to benefit both the numerator (North American store expansion and same-store growth) and the denominator (discount rate) [2][4]. - The company is expected to see a recovery in same-store sales growth in Q4, driven by new IP launches and a lower base effect from the previous quarter [3][4]. - North America is projected to continue its rapid growth, with the potential for improved profitability as the company optimizes its store operations and expands its franchise model [4][5]. Summary by Sections Domestic Market - In Q3 2023, the domestic same-store sales growth was impacted by a high base effect due to the popularity of the "Barbie" IP products. However, new IP products and the expansion of flagship stores are expected to support revenue growth in Q4 [3]. - The company anticipates a year-on-year revenue growth of high single digits to low double digits in Q3, with operating profit benefiting from an increased sales mix of IP products and direct sales [3]. Overseas Market - The North American market is expected to accelerate its growth due to the favorable interest rate environment, which may reduce price competition. The company plans to introduce a franchise model to enhance store expansion and optimize rental and personnel costs [4]. - The report forecasts that overseas revenue will continue to show high growth in Q3, supported by the rapid expansion in North America and Southeast Asia [4]. Financial Projections - The company’s revenue is projected to grow significantly, with expected revenues of RMB 17.32 billion in 2024, representing a 50.97% increase from 2023. Net profit is expected to reach RMB 2.88 billion, a 62.64% increase [6][14]. - The report provides a detailed financial outlook, including an expected EPS of RMB 2.28 for 2024 and a PE ratio of 13.10 [6][14]. TOPTOY Growth - TOPTOY is expected to maintain a steady growth trajectory through continuous iteration of its UE model and optimization of store formats, with ongoing trials in overseas markets [5].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company continues to experience rapid growth, with a significant increase in revenue and profits in Q2 2024, achieving a revenue of 4.035 billion yuan, a year-on-year increase of 24.1% [3] - The company has announced a share buyback plan to repurchase up to 10% of its issued shares over the next year [3] - The company plans to distribute a total of 620 million yuan in interim dividends for 2024 [3] Domestic Performance - The company opened 81 new MINISO stores in Q2 2024, bringing the total to 4,115 stores, a year-on-year increase of 14.2% [3] - Same-store sales performance improved slightly in Q2, with a revenue increase of 1.38% year-on-year [3] - TOPTOY stores also saw a revenue increase of 24.3% year-on-year, despite a decline in same-store sales [3] International Performance - The company added 157 new overseas stores in Q2 2024, totaling 2,753 stores, a year-on-year increase of 566 stores [3] - Same-store sales in international markets grew by 16.3% in H1 2024, with North America, Europe, and Latin America showing strong growth [3] - International revenue reached 1.51 billion yuan in Q2 2024, a year-on-year increase of 35.5% [3] Financial Metrics - The company achieved a gross margin of 43.9% in Q2 2024, an increase of 4.1 percentage points year-on-year [3] - Adjusted net profit for Q2 2024 was 625 million yuan, a year-on-year increase of 9.4% [3] - The company expects revenue to grow to 17.286 billion yuan in 2024, with net profit projected at 2.642 billion yuan [4] Valuation - The company is currently valued at a P/E ratio of 13.5 for 2024, which is expected to decrease to 8.6 by 2026 [4] - The report anticipates continued strong performance, with projected revenues of 20.892 billion yuan and net profits of 3.356 billion yuan in 2025 [4]

Investment Rating - The report maintains a "Buy" rating for MINISO, indicating strong expected performance relative to the market [6][14]. Core Insights - MINISO reported a 2Q24 revenue of RMB 4.04 billion, reflecting a year-on-year increase of 24.1%, with a historic high gross margin of 43.9% [4][9]. - The company's adjusted net profit reached RMB 630 million, up 9.4% year-on-year, demonstrating solid financial health [4][9]. - The domestic market showed high-quality growth, with revenue from mainland China reaching RMB 2.53 billion, a year-on-year increase of 18.1% [5][10]. - The overseas market saw significant expansion, with 2,753 stores as of 2Q24, a 157-store increase quarter-on-quarter, and revenue growth of 109.3% year-on-year [5][11]. - The gross profit margin improved due to a higher proportion of direct sales and effective implementation of IP and brand upgrade strategies [5][12]. - The company has initiated share buybacks and dividends, reinforcing its commitment to shareholder returns [5][13]. Summary by Sections Financial Performance - MINISO's 2Q24 revenue was RMB 4.04 billion, with a gross margin of 43.9% and adjusted EBITDA of RMB 1.0 billion [4][9]. - The adjusted net profit for 2Q24 was RMB 630 million, reflecting a 9.4% increase year-on-year [4][9]. Domestic Market Growth - Revenue from the mainland market reached RMB 2.53 billion, with the core business contributing RMB 2.31 billion, up 18.3% year-on-year [5][10]. - The number of domestic stores increased to 4,115, with same-store sales recovering to 98.3% of the previous year's level [5][10]. Overseas Expansion - The overseas store count reached 2,753, with a revenue contribution of RMB 1.51 billion, accounting for 37.4% of total revenue [5][11]. - Same-store sales in the overseas market grew by 16.3%, with a significant increase in direct sales contribution [5][11]. Profitability and Cost Management - The gross profit margin increased from 39.6% to 43.7% year-on-year, attributed to a higher proportion of direct sales and product upgrades [5][12]. - Selling expenses rose to RMB 83 million, accounting for 20.5% of revenue, indicating a need for effective cost control measures [5][12]. Shareholder Returns - The company repurchased shares and announced a cash dividend of RMB 621 million, representing 50% of adjusted net profit [5][13]. - A new share buyback plan of up to HK$2 billion was also announced, reflecting management's confidence in future business prospects [5][13].

Core Insights - MINISO has opened its first Sanrio-themed store in Australia on September 7, 2024, located on George Street in Sydney, marking its first flagship store in the country [1][3] - The store features over 2,500 SKUs, with more than 70% of its offerings being IP products, including nearly 30% dedicated to Sanrio characters [1] - The store achieved record sales per square meter during its opening weekend, indicating strong market demand [1] Store Location and Accessibility - The new flagship store is situated in a prime location in Sydney, surrounded by major retail areas and attractions, ensuring a steady flow of foot traffic [2] - George Street is recognized as one of the busiest streets in the city center, enhancing the store's visibility and accessibility [2] Marketing and Promotions - To celebrate the store launch, MINISO introduced a limited-edition reusable shopping bag inspired by Australia's kangaroo, which was gifted to customers who spent a specified amount on opening day [3] - A creative video campaign was released to promote the Kroo Bag, inviting Australians to engage with the brand [3] Expansion Strategy - This store is MINISO's second overseas Sanrio-themed location, following the successful launch in Indonesia, indicating the brand's commitment to global expansion [3] - MINISO plans to continue expanding its presence in Australia, targeting key cities and enhancing store design and product offerings [4] - The brand aims to create a joyful shopping experience and spread its Joy Philosophy to a broader audience in Australia [4]

Core Insights - MINISO has opened its largest global flagship store in Jakarta, Indonesia, covering approximately 3,000 square meters and designed to resemble a "Dream Castle Amusement Park," featuring eight product categories and three themed IP zones, enhancing the shopping experience by integrating entertainment and retail [1] - The grand opening on August 31 set a new global single-day sales record of RMB 1.18 million (over USD 166,000) at a single MINISO store, indicating strong consumer demand for MINISO's innovative retail approach [1] - MINISO has rapidly expanded in Indonesia since entering the market in 2017, now operating over 300 stores nationwide, with plans for further expansion, solidifying its position in one of Southeast Asia's largest economies [3] Company Expansion - MINISO operates over 1,400 stores in Asia outside of mainland China as of June 2024, with recent openings including a Sanrio IP-themed store in Vietnam, highlighting the brand's growing presence in the region [4] - The company plans to open a Barbie IP Collection store in Malaysia and additional stores across Southeast Asia, aiming to accelerate its regional expansion [4] - MINISO's global expansion strategy has led to over 6,800 stores across five continents since opening its first international store in 2015, with a goal of opening 900 to 1,100 new stores annually over the next five years [5] Product and Brand Strategy - The flagship store in Jakarta embodies MINISO's "Super IP + Super Store" concept, merging globally recognized intellectual properties with a state-of-the-art retail environment [1] - The launch of the Lucky 7 Perfume series at the flagship store's grand opening featured popular Indonesian actress Prilly Latuconsina, enhancing brand engagement through celebrity interaction [2] - MINISO focuses on providing a relaxing and engaging shopping experience, with aesthetically pleasing design, quality, and affordability at the core of its product offerings [6]

Investment Rating - The report maintains a "Buy" rating for Miniso Group (9896.HK) [2] Core Views - The company's revenue for the first half of 2024 reached 77.59 billion RMB, a year-on-year increase of 25.0%, with adjusted net profit at 12.42 billion RMB, up 17.8% [1] - The company continues to expand its store network, aiming to open 900-1100 new stores globally in 2024, with a total of 6,868 stores as of June 30, 2024 [1] - The report highlights strong performance in overseas markets, with revenue growth of 42.6% year-on-year in the first half of 2024 [1] Summary by Sections Financial Performance - For 24H1, the company achieved a revenue of 77.59 billion RMB, with a domestic revenue of 50.27 billion RMB (up 17.2%) and overseas revenue of 27.32 billion RMB (up 42.6%) [1] - Adjusted net profit margin for 24H1 was 16.2%, reflecting a stable profitability despite increased costs due to store expansion [1] Store Expansion - As of June 30, 2024, the company had opened 6,868 stores, with 4,115 in China and 2,753 overseas, marking an increase of 1,077 stores year-on-year [1] - The company plans to add 340-450 domestic stores and 550-650 overseas stores in 2024, with progress at 42%-54% for domestic and 41%-48% for overseas as of mid-2024 [1] Future Projections - The report forecasts adjusted net profits of 28.28 billion RMB, 34.87 billion RMB, and 41.67 billion RMB for the years 2024, 2025, and 2026, respectively, with corresponding year-on-year growth rates of 20.0%, 23.3%, and 19.5% [1] - The projected P/E ratios for 2024, 2025, and 2026 are 14X, 11X, and 10X, respectively [1]

Investment Rating - The report assigns a "Buy" rating for Miniso (9896.HK) based on its strong performance and growth potential [1]. Core Views - Miniso achieved a revenue of 7.76 billion yuan in H1 2024, representing a 25% year-on-year increase, with adjusted net profit of 1.24 billion yuan, up 18% [1]. - The company continues to expand its global footprint, with a total of 6,868 stores as of June 30, 2024, including 4,115 in mainland China and 2,753 overseas [1]. - The overseas market has shown significant growth, with revenue increasing by 42.6% year-on-year, contributing to 35.2% of total revenue in H1 2024 [1]. Financial Performance Summary - Revenue for H1 2024 was 7.76 billion yuan, with a net profit of 1.24 billion yuan and an adjusted net profit margin of 16.0% [1]. - In Q2 2024, revenue reached 4.04 billion yuan, a 24.1% increase, with adjusted net profit of 625 million yuan, up 9.4% [1]. - The gross margin improved to 43.7%, an increase of 4.1 percentage points year-on-year, driven by a higher proportion of revenue from overseas direct sales [1]. Regional Revenue Breakdown - Revenue from mainland China in H1 2024 was 5.03 billion yuan, a 17.2% increase, with same-store sales at 98.3% of H1 2023 levels [1]. - Top Toy's revenue grew by 37.9%, with same-store sales increasing by 13.6% [1]. - Overseas revenue accounted for 27.32 billion yuan, with same-store sales growth of 16.3% [1]. Future Profit Forecast - The company expects adjusted net profits of 2.808 billion yuan, 3.516 billion yuan, and 4.312 billion yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 14, 11, and 9 [2][3].

Investment Rating - The report maintains a "Recommended" investment rating for the company, with a target price of HKD 48.62, compared to the current price of HKD 34.00 [1]. Core Insights - The company's revenue for the first half of 2024 increased by 25% year-on-year to HKD 7.76 billion, with a gross margin of 43.7%, up by 4.1 percentage points. Adjusted net profit rose by 18% to HKD 1.24 billion, with an adjusted net profit margin of 16.0% [2]. - The company accelerated its store openings, adding 455 new stores globally, bringing the total to 6,868 stores. Domestic stores accounted for 4,115, with 189 new openings, while overseas stores reached 2,753, with 266 new openings [2]. - The company is actively exploring new business models and IPs, such as pop-up stores and 24-hour super stores, which support the recovery of same-store sales [2]. - The gross margin reached a new high of 43.7%, primarily due to improved margins in the overseas direct sales market [2]. - The company plans to distribute dividends amounting to 50% of the adjusted net profit for the first half of 2024 and has approved a share buyback plan of HKD 2 billion, representing 4.8% of the market capitalization [2]. Financial Summary - Total revenue is projected to grow from HKD 11.47 billion in 2023 to HKD 17.28 billion in 2024, reflecting a year-on-year growth rate of 50.6% [3]. - The net profit attributable to shareholders is expected to increase from HKD 1.77 billion in 2023 to HKD 2.81 billion in 2024, with a growth rate of 58.8% [3]. - Earnings per share (EPS) is forecasted to rise from HKD 1.40 in 2023 to HKD 2.23 in 2024, with a price-to-earnings (P/E) ratio of 14 [3].