Investment Rating - The report maintains a "Buy" rating for MINISO, with a target price of $30.60, indicating a potential upside of 23.6% from the current price of $24.75 [1][2][17]. Core Insights - MINISO's overseas direct sales growth has exceeded expectations, with Q3 FY24 revenue increasing by 19% year-on-year to 45.2 billion RMB, driven by a 40% increase in overseas revenue [2][8]. - The gross margin for Q3 FY24 reached a historical high of 44.9%, up 3.1 percentage points year-on-year, attributed to the increased contribution from overseas direct sales [2][12]. - The company is expected to achieve revenue and adjusted net profit of 48.5 billion RMB and 7.5 billion RMB, respectively, in Q4 FY24 [17]. Summary by Relevant Sections Domestic Business Performance - Domestic revenue for Q3 FY24 grew by 9% to 27.1 billion RMB, with MINISO's offline revenue increasing by 4% to 22.3 billion RMB [2][7]. - The number of domestic MINISO stores increased by 12% year-on-year to 4,520, with a same-store sales growth rate showing a slight decline [7][8]. Overseas Business Performance - Overseas revenue for Q3 FY24 reached 18.1 billion RMB, reflecting a 40% year-on-year increase, with same-store sales growth in direct and agency markets showing high single-digit growth [2][8]. - The contribution of overseas revenue to total revenue increased from 32% last year to 37% this year, indicating successful global expansion [12][17]. Financial Projections - Revenue projections for FY24E to FY26E are 171.2 billion RMB, 208.2 billion RMB, and 251.1 billion RMB, representing year-on-year growth rates of 23.7%, 21.6%, and 20.6%, respectively [2][17]. - Adjusted net profit projections for the same period are 28.4 billion RMB, 34.6 billion RMB, and 42.2 billion RMB, with growth rates of 21.6%, 22.0%, and 21.7% [17].

Investment Rating - The report maintains a "Buy" rating for MINISO, indicating a positive outlook for the company's performance in the market [4][13][15]. Core Insights - MINISO reported a revenue of Rmb4.52 billion for Q3 2024, reflecting a year-on-year growth of 19.3%. The gross margin reached a record high of 44.9%, up by 3.1 percentage points year-on-year [4][8]. - The company's domestic revenue from the mainland market was Rmb2.71 billion, growing by 8.7% year-on-year, driven by steady store expansion and improved profitability in its TOP TOY segment [4][9]. - MINISO's overseas expansion is accelerating, with a total of 2,936 overseas stores as of Q3 2024, contributing to a 55.4% year-on-year revenue increase in overseas direct operations [4][10]. - The successful launch of the Harry Potter IP products has significantly boosted sales, indicating the effectiveness of MINISO's global IP strategy [4][12]. - The report projects continued growth in net profit, estimating Rmb28.51 billion, Rmb34.05 billion, and Rmb40.01 billion for the years 2024 to 2026, respectively [4][15]. Summary by Sections Financial Performance - Q3 2024 revenue was Rmb4.52 billion, with adjusted EBITDA of Rmb1.14 billion and adjusted net profit of Rmb686 million, showing respective year-on-year increases of 12.4% and 6.9% [4][8]. - The gross margin improved to 44.9%, attributed to a higher proportion of overseas direct sales and better execution of the IP strategy [4][11]. Domestic Market Insights - The domestic business revenue reached Rmb2.44 billion, growing by 5.7% year-on-year, supported by the expansion of MINISO stores to 4,250 [4][9]. - TOP TOY's revenue surged by 50.4% to Rmb272 million, driven by store expansion and resilient same-store sales [4][9]. Overseas Expansion - MINISO's overseas store count increased by 183 in Q3 2024, with significant contributions from regions such as Latin America and North America [4][10]. - Overseas revenue reached Rmb1.81 billion, marking a 39.8% year-on-year growth, with direct operations accounting for 37% of total overseas revenue [4][10]. Strategic Collaborations - The collaboration with Yonghui is expected to enhance supply chain efficiency and create synergies in private-label development and IP cooperation [4][12].

Investment Rating - Maintain OUTPERFORM rating with a target price of USD 25.20 [1] - Current price is USD 20.01 as of November 29, 2024 [1] - Market capitalization stands at USD 6.25 billion [1] Core Views - The company has passed its trough, and the positive guidance reflects management's confidence [1] - Domestic revenue for the Miniso brand grew by 6% YoY, reaching RMB 2.44 billion [1] - Overseas revenue surged by 40% YoY to RMB 1.81 billion, with 183 net new stores added QoQ [1] - The company expects Q4 revenue growth of 25%-30%, driven by strong performance in both domestic and international markets [1] Financial Performance - Q3 revenue reached RMB 4.52 billion, up 19% YoY [1] - Adjusted net profit was RMB 686 million, a 7% YoY increase, with an adjusted net profit margin of 15.2% [1] - Gross profit margin hit a record high of 44.9%, up 3.1 percentage points YoY [1] - Sales and distribution expense ratio increased to 22%, primarily due to higher costs associated with directly operated stores [1] Domestic Operations - Domestic revenue grew by 9% YoY to RMB 2.71 billion [1] - The company added 135 net new stores in Q3, bringing the total to 4,250 stores in China [1] - O2O business grew nearly 80% YoY, contributing 7%-8% of domestic revenue [1] - TOPTOY, the company's sub-brand, achieved a 50% YoY revenue growth and has been profitable for four consecutive quarters [1] International Expansion - Overseas revenue grew by 40% YoY, with 183 net new stores added in Q3 [1] - The company raised its 2024 store opening guidance to 650-700 stores, up from the previous 550-650 [1] - North American operations have stabilized, with cost structure optimization underway [1] - Local sourcing in the US has reached 30%, with further room for improvement [1] Valuation and Forecast - Revenue for 2024-26 is projected to be RMB 17.2/21.6/25.6 billion, with adjusted net profit of RMB 2.80/3.53/4.23 billion [1] - The company is valued at 20x 2024 PE, with a target price of USD 25.2 [1] - Q4 revenue is expected to grow by 29% YoY to RMB 4.94 billion, with adjusted net profit of RMB 880 million [1] Strategic Initiatives - The company is focusing on O2O, IP-driven products, and precise marketing to boost same-store sales [1] - A new store matrix strategy, including MINISO Land and flagship stores, has been introduced to cater to different customer segments [1] - The acquisition of a 29.4% stake in Yonghui Superstores is progressing as expected, with the deal set to close in Q1 2025 [3]

Financial Data and Key Metrics - Revenue for the first three quarters of 2024 increased by 23% YoY to RMB 12.28 billion, with an average store count increase of 90% and same-store sales growing in low-single digits [6] - Adjusted net profit margin was 50.7%, with adjusted EBITDA increasing by 21% to an adjusted EBITDA margin of 25.3% [41][42] - Inventory turnover days were 85 days, with 30% of MINISO's brand inventory located overseas, up from 21% the previous year [43][44] Business Line Performance - MINISO China revenue grew by 12.3% YoY, with offline store revenue up 11.8% and e-commerce revenue up 90% [12] - Overseas revenue exceeded RMB 4.5 billion, representing a 41% YoY growth, with direct-operated markets growing by 64% and distributor markets by 22% [20] - TOP TOY revenue grew by 43% YoY, with same-store sales up 5%, and 86 new stores added, progressing towards the annual target of 400 stores [27] Market Performance - In China, same-store sales declined by mid-single digits, with high-tier cities outperforming lower-tier cities [15] - Overseas same-store sales showed high-single-digit growth, with direct-operated markets contributing 67% of net new stores, primarily from the US and Indonesia [21] - The US market saw mid-single-digit growth, with plans to expand store operations and improve operational efficiency [64] Company Strategy and Industry Competition - The company is focusing on quality retail and interest-based consumption, aiming to combine product innovation with consumer experience [7] - MINISO plans to add 900 to 1,100 new stores globally each year, with IP product sales contributing over 50% by 2028 [11] - The company is mitigating potential US tariff risks by increasing local sourcing to 30% and establishing backup supply chains in South Asia, Japan, Korea, and the US [24][25] Management Commentary on Operating Environment and Future Outlook - The company remains optimistic about MINISO China's growth in 2025, despite a challenging micro-consumption environment [14] - Management expects Q4 revenue growth of 25% to 30%, with overseas market growth projected at 45% to 50% [58] - The company is confident in achieving its full-year targets, with revenue growth expected to be 20% to 30% YoY and adjusted net profit target of RMB 2.8 billion [51] Other Important Information - The company completed the acquisition of a 29.4% stake in Yonghui, aiming to transform traditional supermarket approaches and improve product service and consumer experience [7][48] - MINISO has collaborated with over 150 IPs globally, including six of the world's top 10 IP licensors, and plans to deepen collaboration with leading global IP licensors [17] - The company has distributed cash dividends exceeding RMB 600 million and returned approximately RMB 1.6 billion to shareholders through dividends and share buybacks [45][46] Q&A Session Summary Question: Q4 Outlook and Growth Opportunities in China - Management expects Q4 revenue growth of 25% to 30%, with overseas market growth projected at 45% to 50% and direct-operated markets growing by 70% to 75% [58] - In China, the company anticipates low-teens growth, driven by e-commerce and store expansion, with plans to add 400 new stores in 2024 [59][60] Question: Overseas Market Expansion and Store Operations - The company plans to add 650 to 700 stores overseas in 2024, with direct-operated markets contributing 67% of net new stores [21][60] - In the US, the company is focusing on improving operational efficiency and controlling costs, with plans to expand store operations during the holiday season [64] Question: Yonghui Acquisition and Performance Improvement - MINISO is supporting Yonghui in optimizing procurement costs, building self-owned brands, and improving store operational efficiency [69][70][71] - The company plans to close underperforming stores and focus on high-quality development, aiming to improve profitability and operational efficiency [72][73] Question: Same-Store Performance and IP Strategy - Same-store sales in China are expected to improve with refined IP product allocation and interest-based consumption strategies [81] - The company has seen strong performance from Harry Potter IP products, with significant sales contributions in overseas markets [87][88] Question: TOP TOY International Expansion and O2O Business - TOP TOY is focusing on profitability and international expansion, with plans to optimize product structure and improve margins [94] - The company is developing its O2O business, with significant growth in the past three quarters and plans to leverage omni-channel strategies to improve same-store performance [85][99] Question: US Market and Competition Landscape - The company is maintaining an asset-light business model in the US, with plans to introduce third-party stores to improve leverage [109] - MINISO is confident in its competitive advantage in the ACG market, with plans to launch new products and deepen IP collaborations [110][111]

GUANGZHOU, China, Nov. 29, 2024 /PRNewswire/ -- MINISO Group Holding Limited (NYSE: MNSO; HKEX: 9896) ("MINISO", "MINISO Group" or the "Company"), a global value retailer offering a variety of trendy lifestyle products featuring IP design, today announced its unaudited financial results for the quarter and the nine months ended September 30, 2024.Financial Highlights Highlights for the Nine Months Ended September 30, 2024 Revenue in the first nine months of 2024 was RMB12,281.3 million (US$1,750.1 million), ...

The most recent trading session ended with MINISO Group Holding Limited Unsponsored ADR (MNSO) standing at $16.90, reflecting a +1.32% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.3% gain on the day. Elsewhere, the Dow gained 0.99%, while the tech-heavy Nasdaq added 0.27%.The company's shares have seen a decrease of 4.19% over the last month, not keeping up with the Retail-Wholesale sector's gain of 3.51% and the S&P 500's gain of 2.1%.Investors will be eagerly watchi ...

GUANGZHOU, China, Nov. 22, 2024 /PRNewswire/ -- MINISO Group Holding Limited (NYSE: MNSO; HKEX: 9896) ("MINISO", "MINISO Group" or the "Company"), a global value retailer offering a variety of trendy lifestyle products featuring IP design, today announced that it will hold an extraordinary general meeting of the Company's shareholders (the "EGM") at 11:00 a.m. Beijing time on January 17, 2025 at Flats B-D, 35/F, Plaza 88, 88 Yeung Uk Road, Tsuen Wan, the New Territories, Hong Kong, for the purposes of consi ...

In the latest market close, MINISO Group Holding Limited Unsponsored ADR (MNSO) reached $17.58, with a -0.68% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.4%. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 1.04%.Heading into today, shares of the company had gained 5.67% over the past month, outpacing the Retail-Wholesale sector's gain of 1.9% and the S&P 500's gain of 0.62% in that time.Analysts and investors alike will be keeping a close eye ...

MINISO's Harry Potter collection features over 800 meticulously designed products spanning various categories, including plush toys, pet products, cups, toys, stationery and gifts, fragrances, accessories, and more than ten other categories. Each product integrates iconic elements inspired by the Harry Potter films, making them instantly recognizable to fans. For example, school-themed items are inspired by the colors and symbols of the four Hogwarts houses, featuring bags, scarves, gloves, and socks. Belo ...

GUANGZHOU, China, Nov. 15, 2024 /PRNewswire/ -- MINISO Group Holding Limited (NYSE: MNSO; HKEX: 9896) ("MINISO", "MINISO Group" or the "Company"), a global value retailer offering a variety of trendy lifestyle products featuring IP design, today announced that it plans to release its September quarter 2024 financial results before the U.S. market opens on Friday, November 29, 2024.The Company's management will hold an earnings conference call at 4:00 A.M. Eastern Time on Friday, November 29, 2024 (5:00 P.M. ...