Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Insights - The company reported Q2 revenue of 4.035 billion yuan, a 24% increase, with adjusted net profit of 625 million yuan, up 9.4%. The adjusted net profit growth rate slowed mainly due to exchange rate effects, with a foreign exchange loss of 4.2 million yuan in Q2 2024 compared to a gain of 66.1 million yuan in Q2 2023. Excluding foreign exchange impacts, the adjusted net profit increased by 24.6% year-on-year [1][2] - The company is steadily advancing its IP strategy, achieving a record high gross margin of 43.9% in Q2, up 4.1 percentage points year-on-year and 0.5 percentage points quarter-on-quarter. The adjusted net profit margin was 15.5%, down 2.1 percentage points year-on-year and 1.1 percentage points quarter-on-quarter [1] - The company aims to open 550-650 new stores overseas in 2024, with a focus on direct sales growth, particularly in the U.S. and Indonesia, where store counts have significantly increased [2][3] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 7.76 billion yuan, a 25% increase, with adjusted net profit of 1.24 billion yuan, up 18%. Comparable store sales grew by 7%, and the number of stores increased by 19 [1][2] Overseas Expansion - Overseas revenue for Q2 and H1 reached 1.51 billion yuan (+35%) and 2.73 billion yuan (+43%), respectively. As of the end of Q2, the company had 2,753 overseas stores, accounting for 40% of total stores, with a net increase of 157 stores in Q2 [2] - The U.S. market saw a 12% increase in same-store sales, driven by a 50% increase in store count [2] Domestic Market - Domestic revenue for Q2 was 2.31 billion yuan (+18%), slightly exceeding previous expectations. The company opened 81 new stores in Q2, with 61% located in first- and second-tier cities [3] - The company launched a successful collaboration product, MINISO×Chiikawa, which generated significant consumer interest and sales [3] Future Projections - The company forecasts revenue growth of 25% for 2024, with adjusted net profit expected to reach 2.85 billion yuan, reflecting a 21% increase [9]

股 票 研 究 海 外 公 司 （ 中 国 香 港 ） 证 券 研 究 报 告 国泰君安版权所有发送给上海东方财富金融数据服务有限公司.东财接收研报邮箱.ybjieshou@eastmoney.com p1 海外拓店提速释放，旺季表现值得期待 名创优品(9896) [Table_Industry] 批零贸易业 [Table_Invest] 评级： 增持 ——名创优品 2024Q2 业绩点评 股票研究 /[Table_Date] 2024.08.31 | --- | --- | --- | --- | |----------|-------------------------------------|------------------|-------| | | | | | | | [table_Authors] 刘越男 ( 分析师 ) | 苏颖 ( 分析师 ) | | | | 021-38677706 | 021-38038344 | | | | liuyuenan@gtjas.com | suying@gtjas.com | | | 登记编号 | S0880516030003 | S088052211000 ...

Financial Performance - For the six months ended June 30, 2024, the company's revenue increased by 25.0% to RMB 7,758,743,000 compared to RMB 6,206,330,000 in the same period of 2023[3]. - Gross profit for the same period rose by 37.9% to RMB 3,389,786,000, up from RMB 2,457,392,000 year-on-year[3]. - Adjusted net profit for the six months ended June 30, 2024, was RMB 1,241,886,000, reflecting a 17.8% increase from RMB 1,054,220,000 in the prior year[3]. - Adjusted EBITDA for the same period rose by 26.0% to RMB 1,967,354,000, compared to RMB 1,561,788,000 in 2023[3]. - The operating profit for the six months ended June 30, 2024, was RMB 1,494.8 million, compared to RMB 1,265.9 million for the same period in 2023[33]. - Net profit for the period grew by 15.7% from RMB 1,017.9 million to RMB 1,177.4 million[47]. - Basic earnings per share increased to RMB 0.94 for the six months ended June 30, 2024, compared to RMB 0.81 in the previous year[94]. - The company’s net profit for the six months ended June 30, 2024, was RMB 1,177,379 thousand, up 15.7% from RMB 1,017,918 thousand in 2023[95]. Revenue Breakdown - Revenue from mainland China rose by 17.2% to RMB 5,026.7 million, driven by a 16.5% increase in revenue from offline stores and a 37.9% increase from the TOP TOY brand[35]. - Revenue from overseas markets surged by 42.6% to RMB 2,732.0 million, accounting for 35.2% of total revenue, up from 30.9% in the same period last year[35]. - Total revenue for the period reached 7,809,027 thousand RMB, reflecting a significant increase compared to previous periods[100]. - For the six months ended June 30, 2024, total external revenue reached RMB 7,758,743 thousand, an increase from RMB 6,206,330 thousand for the same period in 2023, representing a growth of approximately 25.0%[110]. Store Expansion - The number of MINISO stores increased from 6,413 as of December 31, 2023, to 6,868 as of June 30, 2024, while TOP TOY stores grew from 148 to 195[11]. - As of June 30, 2024, the total number of Miniso stores reached 6,868, an increase from 5,791 stores in 2023, representing a growth of approximately 18.6%[13]. - In mainland China, the number of Miniso stores increased from 3,604 in 2023 to 4,115 in 2024, marking a growth of about 14.2%[17]. - The number of TOP TOY stores in mainland China grew from 118 in 2023 to 195 in 2024, reflecting a significant increase of approximately 65.3%[15]. - In overseas markets, the total number of stores increased from 2,187 in 2023 to 2,753 in 2024, a growth of about 25.9%[13]. Operational Efficiency - The company launched over 940 new SKUs on average each month, providing a wide product range of approximately 10,100 core SKUs[12]. - The overall closure rate of Miniso stores in mainland China for the six months ending June 30, 2024, was 3.6%, consistent with the previous year[16]. - Sales and distribution expenses rose by 65.8% from RMB 918.0 million to RMB 1,522.1 million, driven by investments in direct-operated stores, particularly in strategic overseas markets like the United States[40]. Cash Flow and Investments - Operating cash flow increased by 4.9% to RMB 1,293.8 million, with free cash flow at RMB 991.0 million[50]. - The company reported a significant cash inflow from the disposal of other investments, amounting to RMB 4,077,046 thousand in 2024, compared to RMB 3,753,449 thousand in 2023[104]. - The company’s investment in property, plant, and equipment, and intangible assets amounted to RMB 96,115 thousand in 2023, increasing to RMB 302,784 thousand in 2024[104]. Shareholder Returns - The company declared a special cash dividend of $0.2900 per American Depositary Share, totaling approximately $90.5 million, paid on April 9, 2024[92]. - The board has proposed an interim cash dividend of $0.0686 per ordinary share, totaling approximately $85.5 million[143]. - The company repurchased a total of 1,230,200 shares at a total cost of HKD 40.3 million and 254,600 American Depositary Shares at a total cost of USD 4.8 million during the six months ended June 30, 2024[86]. Market Strategy - The company plans to continue expanding its store network and product offerings to meet diverse consumer needs[11]. - The company plans to focus on expanding its TOP TOY brand presence in first and second-tier cities while also penetrating lower-tier cities in mainland China[17]. - The company plans to expand its store network in lower-tier cities in mainland China while optimizing its overseas operations in strategic markets like North America, Asia, and Europe[31]. Corporate Governance - The company has complied with all applicable provisions of the Corporate Governance Code for the six months ended June 30, 2024, except for the recommendation regarding the separation of the roles of Chairman and CEO[79]. - The company believes that having the same individual serve as both Chairman and CEO ensures consistent leadership and effective strategic planning[81].

Financial Performance - Revenue for the quarter increased by 24.1% to RMB 4,035.2 million (USD 555.3 million), surpassing RMB 4 billion for the first time[11] - Gross profit rose by 36.9% to RMB 1,773.3 million (USD 244.0 million), with a gross margin of 43.9%, a historical high compared to 39.8% in the same period last year[11] - Operating profit increased by 8.9% to RMB 751.5 million (USD 103.4 million) and net profit grew by 8.1% to RMB 591.4 million (USD 81.4 million)[11] - Adjusted net profit rose by 9.4% to RMB 625.0 million (USD 86.0 million), with an adjusted net profit margin of 15.5%[11] - For the first half of 2024, revenue increased by 25.0% to RMB 7,758.7 million (USD 1,067.6 million) and gross profit grew by 37.9% to RMB 3,389.8 million (USD 466.5 million)[14] - Revenue for the first half of 2024 reached RMB 7,758.7 million (USD 1,067.6 million), a 25.0% year-on-year growth driven by an 18.8% increase in average store count and approximately 7% same-store sales growth[29] - Revenue from overseas markets grew by 42.6% to RMB 2,732.0 million (USD 375.9 million), accounting for 35.2% of total revenue, up from 30.9% in the same period of 2023[30] - The overseas market revenue grew by 35.5% to RMB 1.51 billion in the second quarter of 2024, breaking previous records[21] Store Expansion - The number of MINISO stores reached 6,868 as of June 30, 2024, with a net addition of 455 stores in the first half of the year[14] - The number of MINISO stores in mainland China was 4,115, with a net addition of 189 stores during the same period[14] - Overseas MINISO stores totaled 2,753, with a record net addition of 266 stores, compared to 72 stores in the same period last year[14] - The number of MINISO stores reached 6,868 as of June 30, 2024, representing a year-on-year increase of 1,077 stores, with 502 net new stores added in the first half of 2024[16][17] - The number of stores in mainland China increased to 4,115 as of June 30, 2024, up by 511 stores compared to the same date in 2023[62] - The number of stores in Asia (excluding China) reached 1,484 as of June 30, 2024, an increase of 278 stores year-over-year[65] - The company plans to continue expanding its store network, particularly in lower-tier cities in mainland China, to enhance market penetration[60] Profitability Metrics - Adjusted EBITDA for the first half of 2024 increased by 26.0% to RMB 1,967.4 million (USD 270.7 million), with an adjusted EBITDA margin of 25.4%[14] - Adjusted EBITDA was RMB 1,002.0 million (USD 137.9 million), reflecting a year-on-year increase of 17.1%[27] - The adjusted net profit margin for the three months ended June 30, 2024, was 15.5%, down from 17.6% in the same period of 2023[57] - Adjusted net profit for the first half of 2024 grew by 18% year-on-year, with an adjusted EBITDA increase of 26%[18] - Basic and diluted earnings per American Depositary Share (ADS) for the June quarter were RMB 1.88 (USD 0.26), a 9.3% increase year-on-year[28] - The adjusted earnings per share (diluted) for the six months ended June 30, 2024, was RMB 0.99, compared to RMB 0.83 in the same period of 2023[57] Expenses and Investments - Selling and distribution expenses increased by 72.5% year-on-year to RMB 826.1 million, primarily due to investments in direct-operated stores in strategic overseas markets[24] - General and administrative expenses rose by 38.1% year-on-year to RMB 227.2 million, driven by personnel-related costs associated with business growth[25] - Free cash flow for the first half of 2024 was RMB 991.0 million (USD 136.4 million) with capital expenditures of RMB 302.8 million (USD 41.7 million)[14] Future Outlook - The company plans to maintain its revenue growth target of 20% to 30% for 2024, with an adjusted net profit target of RMB 2.8 billion or higher[18] - The company aims to repurchase up to 10% of its total outstanding shares within the next 12 months, believing it aligns with the best interests of the company and its shareholders[18] - The company plans to continue expanding its direct-operated stores, particularly in strategic overseas markets like the United States, with a total of 343 overseas direct-operated stores as of June 30, 2024[33] - The company plans to continue expanding its market presence and investing in new product development to drive future growth[53] Non-IFRS Metrics - The adjusted net profit is defined as profit excluding equity-settled share payment expenses, providing a clearer view of operational performance[44] - Adjusted EBITDA is calculated as adjusted net profit plus depreciation, amortization, finance costs, and income tax expenses, allowing for a comprehensive assessment of profitability[44] - The adjusted net profit margin is calculated by dividing adjusted net profit by revenue, offering insights into profitability relative to sales[45] - The company uses non-IFRS financial metrics to evaluate operational performance and inform business planning, which may differ from IFRS metrics[45] - Miniso's management believes that these non-IFRS metrics provide useful information for investors to understand and assess operational performance[45] - The company acknowledges the limitations of non-IFRS metrics, including their inability to reflect all income and expense items impacting operations[46] Risks and Forward-Looking Statements - Future business development and financial performance are subject to various risks and uncertainties, including market demand and competitive landscape[47] - The company does not undertake any obligation to update forward-looking statements unless required by applicable law[47]

 GUANGZHOU, China, Aug. 30, 2024 /PRNewswire/ -- MINISO Group Holding Limited (NYSE: MNSO; HKEX: 9896) ("MINISO", "MINISO Group" or the "Company", together with its subsidiaries, the "Group"), a global value retailer offering a variety of trendy lifestyle products featuring IP design, today announced that, the board of directors of the Company (the "Board") authorized and approved a new share repurchase program on August 30, 2024 (the "2024 Share Repurchase Program"), under which the Company may repurchase ...

Core Viewpoint - MINISO Group reported strong financial results for the June Quarter and the First Half of 2024, with significant revenue growth and improved profitability metrics, driven by expansion in both domestic and international markets [1][9]. Financial Highlights for the June Quarter - Revenue increased by 24.1% year over year to RMB4,035.2 million (US$555.3 million), surpassing RMB4 billion for the first time [2]. - Gross profit rose by 36.9% year over year to RMB1,773.3 million (US$244.0 million), with a gross margin of 43.9%, a record high [2][15]. - Operating profit increased by 8.9% year over year to RMB751.5 million (US$103.4 million) [2]. - Adjusted net profit grew by 9.4% year over year to RMB625.0 million (US$86.0 million), despite a net foreign exchange loss [2][18]. - Adjusted EBITDA increased by 17.1% year over year to RMB1,002.0 million (US$137.9 million) [2][26]. Financial Highlights for the First Half of 2024 - Revenue increased by 25.0% year over year to RMB7,758.7 million (US$1,067.6 million) [3]. - Gross profit rose by 37.9% year over year to RMB3,389.8 million (US$466.5 million), with a gross margin of 43.7% [3][21]. - Operating profit increased by 18.1% year over year to RMB1,494.8 million (US$205.7 million) [3]. - Adjusted net profit grew by 17.8% year over year to RMB1,241.9 million (US$170.9 million) [3][25]. - Adjusted EBITDA increased by 26.0% year over year to RMB1,967.4 million (US$270.7 million) [3][26]. Operational Highlights - The total number of MINISO stores reached 6,868 as of June 30, 2024, with 455 net new stores opened in the First Half of 2024 [4]. - The number of MINISO stores in mainland China was 4,115, with 189 net new stores opened [4]. - Overseas markets saw a record opening of 266 net new stores, totaling 2,753 stores [4][6]. Strategic Comments - The CEO highlighted the successful execution of the five-year strategic plan, with significant progress in expanding the store network and achieving double-digit same-store sales growth in overseas markets [9]. - The CFO noted that despite ongoing investments in overseas markets, the company maintained healthy profitability levels, with a focus on disciplined financial strategies [10][11]. Dividend Declaration - The board approved an interim cash dividend of approximately US$85.5 million (RMB621.3 million), representing about 50% of the adjusted net profit for the First Half of 2024 [12].

The Santa Monica store, encompassing over 3,700 square feet marks the latest chapter in MINISO's U.S. expansion. This year alone, MINISO has opened numerous new stores in key locations across the country, including Times Square and Tangram in New York, and at the American Dream Mall in New Jersey, reinforcing its strategic focus on building a strong and widespread presence in the world's largest consumer market. The brand's ability to resonate with American consumers is evident in the continued success of i ...

MINISO's Lucky 7 perfume series embodies the idea of "Naturally Lucky" – the belief that everyone possesses innate luck. Through carefully crafted natural fragrances, Lucky 7 creates an uplifting atmosphere that helps individuals unlock their own good fortune and attract positive energy. MINISO believes that a positive outlook is key to harnessing luck, and the fresh, floral, and fruity notes of Lucky 7 infuse everyday life with optimism and hope. The phrase "Naturally Lucky" encapsulates both the idea that ...

Summary of Conference Call Company/Industry Involved - The conference call pertains to Guotai Donation Coupons, specifically for clients who have officially signed contracts with the company [1]. Core Points and Arguments - The content of the audio and text records from the conference call is intended solely for internal learning purposes for Guotai Donation Coupon clients [1]. - Distribution of the conference call content to external parties is prohibited without prior approval from Guotai Donation Coupon Research Institute [1]. - Guotai Donation Coupons has not authorized any media to disseminate information related to this conference call [1]. Other Important but Possibly Overlooked Content - The necessity for internal review and approval before retaining any records from the conference call highlights the company's emphasis on confidentiality and controlled information dissemination [1].

Company Overview - MINISO Group Holding Limited Unsponsored ADR (MNSO) closed at $15.85, showing no change from the previous day's closing price [1] - Over the past month, MNSO shares have decreased by 19.01%, underperforming the Retail-Wholesale sector's loss of 6.2% and the S&P 500's loss of 4.22% [1] - The company is set to release its earnings report on August 30, 2024, with a consensus revenue estimate of $557.54 million, reflecting a 24.31% increase from the same quarter last year [1] Analyst Estimates - Recent changes to analyst estimates for MNSO indicate evolving short-term business trends, with positive revisions suggesting optimism about the company's outlook [2] - The Zacks Rank system, which assesses estimate changes, currently ranks MNSO at 4 (Sell), with a consensus EPS projection that has decreased by 2.41% in the past 30 days [3] Valuation Metrics - MNSO is trading at a Forward P/E ratio of 13.06, which is below the industry's average Forward P/E of 15.19, indicating a valuation discount [3] - The company has a PEG ratio of 0.59, significantly lower than the Retail - Apparel and Shoes industry's average PEG ratio of 1.71 [3] Industry Context - The Retail - Apparel and Shoes industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 173, placing it in the bottom 32% of over 250 industries [4] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]