Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [7]. Core Insights - The company achieved a record high gross margin of 44.9% in 2024, driven by accelerated overseas direct sales and improved single-store efficiency [3][4]. - Total revenue for 2024 reached 17 billion CNY, reflecting a year-on-year growth of 22.8%, with significant contributions from both domestic and overseas markets [1][2]. - The company plans to continue its expansion strategy, with expectations of revenue and profit growth in 2025 and 2026 [5]. Summary by Sections Financial Performance - In Q4 2024, the overall revenue was 4.71 billion CNY, a year-on-year increase of 22.7%. For the entire year, revenue was 17 billion CNY, up 22.8% [1]. - The gross margin for 2024 was 44.9%, an increase of 3.7 percentage points from the previous year [4]. Regional Performance - Domestic revenue in mainland China for Q4 was 2.3 billion CNY, growing by 6.5% year-on-year, while overseas revenue reached 2.13 billion CNY, marking a 42.7% increase [1]. - For the full year, domestic revenue was 9.33 billion CNY (up 10.9%) and overseas revenue was 6.67 billion CNY (up 41.9%), accounting for 39.3% of total revenue [1]. Channel Performance - The brand achieved total revenue of 16 billion CNY in 2024, a 22% increase, while the TOP TOY brand generated 980 million CNY, growing by 44.7% [2]. - The company opened 1,219 new stores globally, bringing the total to 7,780 stores by the end of 2024 [2]. Strategic Initiatives - The company is focusing on enhancing its IP strategy and expanding its overseas presence, with the first TOP TOY store opening in Bangkok, Thailand [4]. - The adjusted net profit for 2024 was 2.721 billion CNY, reflecting a year-on-year growth of 15.4% [4]. Shareholder Returns - The company returned a total of 1.575 billion CNY to shareholders in 2024 through cash dividends and share buybacks [5].

Group 1 - MINISO Group (MNSO) has experienced significant stock volatility, including a nearly 20% drop in two days following the announcement of acquiring a major stake in a struggling company in China [1] - The company has been under coverage since July of the previous year, indicating ongoing analysis and interest in its performance [1] Group 2 - The analyst has a beneficial long position in MNSO shares, indicating confidence in the company's future performance [2] - The article reflects the analyst's personal opinions and is not influenced by external compensation, ensuring an independent perspective [2]

Investment Rating - The report maintains a "Buy" rating for MINISO [4][15] Core Insights - MINISO's overseas expansion and IP strategy are accelerating, contributing to revenue growth and improved profitability [3][15] - The company reported slightly below expectations for its 4Q24 and FY24 results, with a revenue of Rmb4.71 billion, a gross margin of 47.0%, and an adjusted net profit of Rmb793 million [7][9] Financial Performance Summary - For FY24, MINISO achieved a revenue of Rmb16.99 billion, a year-on-year increase of 22.8%, and an adjusted net profit of Rmb2.72 billion, up 15.4% [7][9] - The company forecasts revenue growth to Rmb21.13 billion in 2025, with a projected adjusted net profit of Rmb3.11 billion [8][15] Revenue Growth Drivers - Domestic store expansion and TOP TOY's strong sales contributed to revenue growth, with MINISO's domestic revenue reaching Rmb2.30 billion, a 6.5% increase year-on-year [10] - Overseas store count reached 3,118, with a revenue increase of 65.5% year-on-year in 4Q24, contributing significantly to overall revenue [11][12] Gross Margin and Profitability - The gross margin reached a record high of 47.0%, driven by an increased proportion of direct-operated stores and improved execution of the IP strategy [12][15] - Adjusted net margin for 4Q24 was 16.8%, reflecting healthy profitability despite increased selling expenses [12] Strategic Partnerships and Future Outlook - MINISO is enhancing its partnership with Yonghui to accelerate retail transformation and is collaborating with IPs to support global brand expansion [13][14] - The company aims to assist 100 Chinese IPs in going global over the next decade, which is expected to drive long-term sales growth [14]

Group 1 - U.S. stock futures increased, with Dow futures up approximately 300 points on Monday [1] - James Hardie Industries plc announced plans to acquire AZEK for $8.75 billion, leading to a sharp decline in its shares by 12.7% to $25.50 in pre-market trading [1] Group 2 - Progyny, Inc. experienced a decline of 6.5%, trading at $20.44 in pre-market [2] - New Oriental Education & Technology Group Inc. fell by 5.9% to $47.26 in pre-market [2] - MINISO Group Holding Limited reported disappointing quarterly sales, resulting in a 3.3% drop to $18.31 in pre-market [2] - FTAI Infrastructure Inc. decreased by 2.6% to $5.16 in pre-market [2] - CEVA, Inc. saw a decline of 2.2%, trading at $27.72 in pre-market [2] - Fold Holdings, Inc. fell by 2.1% to $8.25 in pre-market after a significant increase of 31% on Friday [2]

Financial Data and Key Metrics Changes - In 2024, total revenue reached RMB 17 billion, growing by 23% year-over-year, driven by an 80% increase in average store count, despite a low single-digit decline in comparable same-store sales [39][40]. - Gross profit margin improved by 3.7 percentage points to 44.9%, marking eight consecutive quarters of margin growth [42]. - Adjusted net profit reached RMB 2.72 billion, growing by 15%, with an adjusted net profit margin of 16% [51]. Business Line Data and Key Metrics Changes - MINISO China revenue grew by 11% to RMB 9.3 billion, while MINISO Overseas revenue surged by 42% to RMB 6.68 billion [40]. - TOP TOY contributed 45% to overall growth, with a net increase of 128 stores and a gross margin improvement of 7.3% [29]. Market Data and Key Metrics Changes - Overseas operations accounted for 39% of total revenue, up from 34% the previous year, with direct-operated overseas revenue growing by 66% [41]. - The US market showed triple-digit compound growth from 2021 to 2024, with 154 new stores added in 2024, bringing the total to 275 locations across 47 states [19][40]. Company Strategy and Development Direction - The company aims to double its store count by the end of 2028 compared to the end of 2023, focusing on store quality over quantity [65]. - A global strategy emphasizes localization, with a dedicated product development team established in South Korea to tailor merchandise for local markets [24][26]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in accelerated growth for 2025, with expectations of double-digit growth in offline business and continued strong performance in overseas markets [64][95]. - The company plans to implement disciplined cost control while sustaining rapid performance growth, particularly in the US market [64][95]. Other Important Information - The company achieved an ESG rating upgrade for three consecutive years, with an MSCI rating of AA, reflecting its commitment to sustainable development [35]. - A final dividend of approximately RMB 740 million was announced, representing 50% of adjusted net profit for H2 2024 [56]. Q&A Session Summary Question: Same-store performance in China and growth drivers - Management noted that larger stores showed better recovery, and plans to convert smaller stores into larger formats are underway. The performance of IP Land stores exceeded expectations, and these will be a key strategy moving forward [75][76][78]. Question: Profit per store in the US and same-store sales outlook - The US market is expected to see triple-digit growth in 2025, with ongoing improvements in GP margin anticipated as new stores mature [80][95]. Question: Margin outlook and YH transaction details - Management confirmed confidence in revenue and profit growth for 2025, with a focus on improving the profitability of directly operated stores. The YH acquisition aims to enhance product competitiveness and operational efficiency [94][100]. Question: New store opening targets for 2025 - The company plans to maintain a flat number of new stores compared to 2024, focusing on quality and strategic locations rather than sheer quantity [111][115]. Question: Introduction of third-party products and impact on sales - The introduction of third-party beauty products aligns with target demographics and is expected to enhance same-store sales and profitability [118][119].

Core Insights - MINISO Group reported a strong financial performance for the full year 2024, with revenue reaching RMB 16,994.0 million (US$ 2,328.2 million), representing a year-over-year increase of 22.8% [5][16] - The company achieved a record gross margin of 44.9%, up from 41.2% in 2023, driven by consistent growth over eight consecutive quarters [5][20] - MINISO's overseas store count reached a milestone of 3,000, contributing significantly to the company's growth strategy [5][9] Financial Highlights - Revenue increased by 22.8% year over year to RMB 16,994.0 million (US$ 2,328.2 million) [5][16] - Gross profit rose by 34.0% year over year to RMB 7,637.1 million (US$ 1,046.3 million) [5][19] - Operating profit increased by 17.6% year over year to RMB 3,315.8 million (US$ 454.3 million) [5][23] - Profit for the period grew by 15.9% year over year to RMB 2,635.4 million (US$ 361.1 million) [5][25] - Adjusted net profit increased by 15.4% year over year to RMB 2,720.6 million (US$ 372.7 million) [5][25] - Cash position was RMB 6,698.1 million (US$ 917.6 million) as of December 31, 2024 [5][27] Operational Highlights - The total number of stores increased by 1,219 to 7,780 as of December 31, 2024, with over 90% of new stores located in overseas markets [5][6] - The number of MINISO stores reached 7,504, with a net increase of 1,091 stores in the full year [5][6] - The number of TOP TOY stores grew to 276, with a record opening of 128 new stores [5][6] Strategic Developments - The company emphasized its globalization strategy, which has led to a compound annual growth rate of over 40% in revenue from overseas markets from 2021 to 2024 [8][9] - MINISO's revenue from overseas markets grew by 41.9% year over year, contributing 39.4% to the total revenue from the MINISO brand [8][17] - The company plans to continue optimizing store layouts and refining product assortments to enhance same-store sales growth [11] Shareholder Returns - MINISO returned RMB 1,574.5 million to shareholders in 2024 through cash dividends and share repurchases [5][10] - A final cash dividend of approximately RMB 739.4 million (US$ 101.3 million) was declared, representing about 50% of the adjusted net profit for the second half of 2024 [13][10] Future Outlook - The company is optimistic about top-line acceleration in 2025, focusing on same-store sales growth and improving sales per square meter [11] - MINISO aims to maintain a reasonable and healthy profit margin while continuing to expand its global footprint [11]

Core Viewpoint - MINISO Group plans to release its financial results for the December quarter and the full year of 2024 on March 21, 2025, before the U.S. market opens [1] Financial Results Announcement - The earnings conference call will take place at 5:00 A.M. Eastern Time on March 21, 2025, with simultaneous interpretation in English [2] - Access to the conference call can be made via a Zoom link or by dialing specific phone numbers provided for various regions [2][3] Company Overview - MINISO Group is a global value retailer known for trendy lifestyle products featuring IP design, with a focus on quality, affordability, and aesthetically pleasing design [5] - The company has established a significant store network worldwide since its first store opening in China in 2013, building the MINISO brand as a globally recognized retail name [5]

Investment Rating - The report maintains an "OUTPERFORM" rating for the company [2][8][15] Core Insights - The company is expected to face domestic challenges in Q4, but the growth path for 2025 is clear, with projected revenue growth of 24% for 2025 [3][6][15] - The company is projected to achieve a revenue of RMB 17.1 billion in 2024, with a year-on-year growth of 23.6% [8][12] - The adjusted net profit for 2024 is expected to be RMB 2.75 billion, reflecting a 17% increase [8][12][15] Financial Performance Summary - Q4 2024 revenue is projected at RMB 4.83 billion, with domestic revenue at RMB 2.63 billion and overseas revenue at RMB 2.19 billion [3][14] - The adjusted net profit for Q4 2024 is expected to be RMB 827 million, with an adjusted net profit margin of 17.1% [3][14] - For 2025, revenue is forecasted to reach RMB 21.24 billion, with a net profit of RMB 3.32 billion, indicating a 20% growth [8][12] Revenue and Profitability Forecast - The company anticipates a revenue increase of 24% in 2025, with a gross profit margin projected to be 45.1% [8][12] - The adjusted net profit margin for 2025 is expected to be 15.6% [8][12] - The company plans to open approximately 669 new stores in 2024, contributing to its revenue growth [5][6] Market Position and Strategy - The company is focusing on expanding its overseas market, with a projected revenue growth of 72% in direct markets [5][6] - The report highlights the successful collaboration with popular IPs, which is expected to enhance product offerings and drive sales [4][6] - The company is also optimizing its store expansion strategy, particularly in North America and Southeast Asia [6][8]

Company Performance - MINISO Group Holding Limited Unsponsored ADR (MNSO) closed at $22.62, reflecting a +0.49% change from the previous day's closing price, which is lower than the S&P 500's gain of 1.04% on the same day [1] - Over the past month, MNSO shares experienced a loss of 1.01%, underperforming the Retail-Wholesale sector's gain of 8.48% and the S&P 500's gain of 3.92% [1] Earnings and Analyst Estimates - Investors are anticipating the upcoming earnings disclosure for MINISO Group Holding Limited Unsponsored ADR, with a focus on any recent changes to analyst estimates, as these revisions often indicate short-term business trends [2] - Positive estimate revisions are interpreted as a favorable sign for the company's business outlook [2] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks MINISO Group Holding Limited Unsponsored ADR at 3 (Hold), with no change in the Zacks Consensus EPS estimate over the past month [4] - MINISO is trading at a Forward P/E ratio of 15.21, which aligns with the industry average Forward P/E of 15.21, indicating no significant deviation in valuation [5] Growth Metrics - The company has a PEG ratio of 0.79, which is lower than the average PEG ratio of 1.15 for the Retail - Apparel and Shoes industry, suggesting a more favorable valuation relative to expected earnings growth [6] Industry Context - The Retail - Apparel and Shoes industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 56, placing it in the top 23% of over 250 industries, indicating strong performance potential [7]

Group 1 - MINISO Group Holding Limited Unsponsored ADR (MNSO) ended the recent trading session at $23.15, showing a +1.14% change from the previous day's closing price, outperforming the S&P 500's daily loss of 0.95% [1] - Over the past month, shares of MINISO have decreased by 7.96%, underperforming the Retail-Wholesale sector's gain of 7.69% and the S&P 500's gain of 1.86% [1] Group 2 - The upcoming earnings release of MINISO Group Holding Limited Unsponsored ADR is highly anticipated by investors, and monitoring recent shifts in analyst projections is recommended [2] - Positive revisions in estimates indicate analysts' confidence in the company's business performance and profit potential [2] Group 3 - The Zacks Rank system, which includes estimate changes, has shown a strong track record of outperformance, with 1 ranked stocks yielding an average annual return of +25% since 1988 [4] - Currently, MINISO Group Holding Limited Unsponsored ADR holds a Zacks Rank of 3 (Hold) [4] Group 4 - MINISO Group Holding Limited Unsponsored ADR has a Forward P/E ratio of 15.47, which is a premium compared to its industry's average Forward P/E of 15.26 [5] - The company has a PEG ratio of 0.8, while the Retail - Apparel and Shoes industry has an average PEG ratio of 1.23 [6] Group 5 - The Retail - Apparel and Shoes industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 74, placing it in the top 30% of all industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]