Summary of Miniso (MNSO) Earnings Call Company Overview - **Company**: Miniso (MNSO) - **Market Cap**: $6.4 billion - **Enterprise Value**: $7.0 billion - **Current Price**: $20.84 - **12-Month Price Target**: $25.30 (Upside: 21.4%) [1][21] Key Financial Performance - **2Q25 Revenue Growth**: 23% YoY, exceeding guidance of 18-21% [1][33] - **Adjusted Operating Profit Growth**: 8.5% YoY, against guidance of flat/slight decline [1][36] - **Miniso China Sales Growth**: 14% YoY, beating expectations [1][29] - **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 from >22.8% [2][22] - **Adjusted Operating Profit Expectation**: Rmb3.65bn-3.85bn, compared to Rmb3.4bn in 2024 [2][22] - **3Q25 Topline Growth Guidance**: 25-28% YoY with low-single-digit same-store sales growth (SSSG) [2][23] Strategic Initiatives - **Store Expansion Plans**: - 100-150 net openings in Miniso China - Over 500 store additions overseas, with a focus on quality [22] - **Large Store Strategy**: - Miniso Land stores achieving average monthly sales of Rmb4 million [25] - New stores in the US showing 50% higher productivity compared to existing ones [25][27] - **In-house IP Cultivation**: - Development of a dual-track IP strategy with both third-party and in-house IPs [28] - Exclusive IPs like Yoyo expected to generate significant sales [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] Shareholder Returns - **Dividend Payout Ratio**: 50% in 1H25, indicating strong commitment to shareholder returns [39] - **Share Buyback**: Approximately 1% of total shares in 1H25 [41] Additional Insights - **Operational Efficiency**: Improved collaboration across departments leading to better product preparation and execution [29] - **Sales Performance by Segment**: - Miniso China: Mid-high teens sales growth expected - Miniso Overseas: 30-35% YoY sales growth anticipated [24] This summary encapsulates the key points from Miniso's earnings call, highlighting the company's strong performance, strategic initiatives, and positive outlook for the future.

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a Q2 adjusted net profit growth of 11% year-on-year, indicating a potential operational turning point with positive same-store sales growth in the domestic market [1] - The company is positioned as a leading trend retail brand with its own IP strategy, and the overseas expansion presents significant growth opportunities [1] - The report anticipates an increase in Non-IFRS net profit for 2025-2027, reflecting a positive outlook on the company's financial performance [1] Financial Performance Summary - For 2023A, total revenue is projected at 13,838 million, with a year-on-year growth of 39.42% [1] - The adjusted net profit for 2025E is estimated at 2,939 million, with a year-on-year growth of 8.03% [1] - The company's gross margin for Q2 was 44.28%, showing a year-on-year increase of 0.33 percentage points [1] - The company plans to open over 500 new overseas stores in 2025, focusing on store quality rather than quantity [1] - The company reported a total revenue of 49.66 billion for Q2, with a year-on-year increase of 23.07% [1] Market Data Summary - The closing price of the stock is 39.06 HKD, with a market capitalization of approximately 44,290.37 million HKD [5] - The price-to-earnings ratio (P/E) is currently at 19.87, projected to decrease to 11.07 by 2027E [1][8] - The company has a net asset value per share of 8.67 [6]

Investment Rating - The report maintains a "Buy" rating for the company, with expected adjusted net profits of 29.5 billion, 34 billion, and 41.9 billion for the years 2025, 2026, and 2027 respectively, corresponding to P/E ratios of 15, 13, and 11 times [4]. Core Insights - The company reported H1 revenue of 9.39 billion (up 21%) and adjusted net profit of 1.279 billion (up 3%), exceeding market expectations. Q2 revenue reached 4.97 billion (up 23.1%) with an adjusted net profit of 690 million (up 10.6%) [2]. - Domestic and overseas performance showed positive trends, with domestic same-store sales showing a low single-digit increase in Q2, and overseas sales in North America and Europe performing well [2][3]. - The company is focusing on expanding its IP portfolio and enhancing its store network, with a total of 4,305 stores as of Q2, reflecting a net increase of 190 stores [2][3]. Summary by Sections Financial Performance - H1 revenue was 9.39 billion, with Q2 revenue at 4.97 billion, showing a year-on-year increase of 23.1%. Adjusted net profit for H1 was 1.279 billion, with Q2 adjusted net profit at 690 million [2]. - The adjusted net profit margin for Q2 was 13.9%, with a slight decrease compared to the previous quarter [2]. Domestic Operations - Domestic same-store sales showed a low single-digit increase in Q2, indicating a recovery trend. The company has successfully opened IP flagship stores and optimized its operational strategies [2]. - The total number of domestic stores reached 4,305, with significant growth in first, second, and third-tier cities [2]. Overseas Operations - The overseas segment reported a GMV of 7.33 billion for H1, with a year-on-year increase of 14.5%. The total number of overseas stores reached 3,307, with notable growth in Asia and Europe [2]. - North America showed signs of recovery, while Europe performed strongly, contributing to the overall growth in the overseas segment [2][3]. Future Projections - The company expects adjusted net profits to grow significantly over the next few years, with projections of 29.5 billion, 34 billion, and 41.9 billion for 2025, 2026, and 2027 respectively [4][8]. - The report anticipates continued growth driven by store expansion and the development of proprietary IP, with a clear growth path for the IP retail group [3].

Market Performance - The ChiNext Index increased by 1%, while the Shanghai Composite Index rose by 0.24% and the Shenzhen Component Index gained 0.49% [2] - The STAR 50 Index surged by 3%, reaching a nearly three-and-a-half-year high, with significant gains in the chip industry, including Haiguang Information rising over 10% to a historical high and Cambrian rising nearly 10% [2] - The lithium carbonate futures main contract experienced a sharp decline, dropping over 4% at one point [2] Sector Highlights - Domestic chip concepts opened strong, with Cambrian rising nearly 4%, and sectors like computing power and spatial big data showing strength [4] - The liquid cooling concept continued to adjust, while financial technology, stablecoins, and rare earth sectors saw slight declines [4] Hong Kong Market - The Hang Seng Index rose by 0.40%, and the Hang Seng Tech Index increased by 0.99% [5] - Automotive stocks performed well, with Xpeng Motors surging by 9% and NIO rising nearly 6% [5] - Miniso reported over 20% year-on-year revenue growth in Q2, with its stock rising over 10% [5]

Group 1 - The core viewpoint of the articles highlights the performance of various companies in the consumer sector, particularly focusing on their financial results for the second quarter of 2025 [1][2][3] Group 2 - Miniso Group reported total revenue of 4.97 billion yuan for Q2 2025, representing a year-on-year growth of 23.1%. The gross margin for the quarter was 44.3%, an increase of 40 basis points compared to the same period last year. Adjusted net profit reached 690 million yuan, up 10.6% year-on-year, with an adjusted net profit margin of 13.9% [1] - Kuaishou announced total revenue of 35 billion yuan for Q2 2025, a year-on-year increase of 13.1%. The adjusted net profit reached 5.6 billion yuan, growing 20.1% year-on-year, with an adjusted net profit margin of 16.0%, marking a historical high for a single quarter [2] - Kuaishou's average daily active users reached 409 million in Q2 2025, achieving a historical high [2]

Core Viewpoint - MINISO Group reported positive growth in same-store sales, indicating a strong operational performance and effective global expansion strategy [4]. Financial Performance - In Q2 2025, MINISO Group achieved total revenue of 4.97 billion yuan, a year-on-year increase of 23.1% [7]. - The gross margin was 44.3%, up 40 basis points from the same period in 2024 [7]. - Adjusted net profit (Non-IFRS) reached 690 million yuan, growing 10.6% year-on-year, with an adjusted net profit margin of 13.9% [7]. - Revenue from mainland China was 2.62 billion yuan, up 13.6%, while overseas revenue was 1.94 billion yuan, up 28.6% [7]. Store Expansion - As of June 30, 2025, MINISO had 4,305 stores in mainland China, with a net increase of 30 stores in the quarter, including 7 MINISO LAND locations [8]. - The overseas store count reached 3,307, with a net increase of 94 stores in the same period [7][8]. - The MINISO LAND stores achieved high monthly sales averages, with the flagship store in Shanghai generating over 100 million yuan in sales within 9 months [8]. International Market Growth - New flagship stores opened in South Korea, Australia, and Thailand, enhancing the brand's global image and driving strong overseas growth [10]. - In the U.S., new store performance was 1.5 times that of older stores, with revenue growth exceeding 80% year-on-year in Q2 [10]. IP Strategy - MINISO is leveraging a dual-track model of "top-tier licensed IP + signed artist IP" to enhance brand appeal and attract diverse consumer groups [12]. - Collaborations with major IPs like Disney and Sanrio have been successful, with themed events reaching international markets [12]. - The company has signed 9 emerging toy artists and plans to significantly increase this number, focusing on long-term IP development [12]. Future Outlook - The company aims to deepen its IP strategy to ensure sustainable high-quality growth, with a focus on global influence [13]. - MINISO's commitment to IP development is seen as a long-term strategy to drive differentiated and replicable growth [13].

Core Viewpoint - The article highlights the performance of various stock indices and sectors in the Chinese market, with a notable rise in the ChiNext index and the STAR Market, particularly driven by the semiconductor industry [3][4]. Market Performance - The ChiNext index increased by 1%, while the Shanghai Composite Index rose by 0.24% and the Shenzhen Component Index gained 0.49% [3]. - The STAR Market saw a significant rise of 3%, reaching a nearly three-and-a-half-year high, with companies in the chip industry, such as Haiguang Information and Cambrian, experiencing gains of over 10% and nearly 10% respectively [4]. Commodity Market - Lithium carbonate futures experienced a sharp decline, dropping over 4% at one point, indicating volatility in the commodity market [5]. Opening Market Trends - At the market opening, the three major indices showed mixed results, with the Shanghai Composite Index up by 0.03%, the Shenzhen Component down by 0.15%, and the ChiNext down by 0.31% [7]. - The domestic chip concept stocks opened strong, with Cambrian rising nearly 4%, while other sectors like liquid cooling and financial technology saw slight declines [7]. Hong Kong Market - The Hong Kong market opened with the Hang Seng Index up by 0.4% and the Hang Seng Tech Index up by 0.99%, driven by strong performances in the automotive sector, particularly with Xiaopeng Motors rising by 9% [9].

Core Viewpoint - Miniso Group is experiencing significant stock price movement, reflecting investor interest and confidence in its business performance and growth potential [1][2]. Group 1: Company Performance - As of mid-2025, Miniso reported total revenue of 9.393 billion yuan and a net profit of 906 million yuan [2]. - The company's product GMV reached approximately 18 billion yuan (2.8 billion USD) by 2021, establishing it as the largest private label home goods retailer globally [1]. Group 2: Stock Activity - On August 21, the company repurchased 16,000 shares at a price range of 37.8-38 HKD per share, totaling a repurchase amount of 607,000 HKD [2]. - On August 22, Miniso's stock price increased by 12.14%, reaching 43.8 HKD per share with a trading volume of 83.3957 million HKD [1].

Core Viewpoint - Miniso (09896) experienced a significant stock price increase of over 10% following the release of its mid-term results for 2025, indicating positive market sentiment towards the company's performance and future outlook [1] Financial Performance - The company reported a revenue of 9.393 billion RMB, representing a year-on-year growth of 21.1% [1] - Profit attributable to equity shareholders was 906 million RMB, showing a decline of 22.6% compared to the previous year [1] - Basic earnings per share for ordinary shares stood at 0.74 RMB [1] - For the second quarter, revenue reached 4.97 billion RMB, with a year-on-year increase of 23.1% [1] - Adjusted net profit for the second quarter grew by 10.6% to 690 million RMB [1] - TOP TOY's revenue surged by 87.0%, setting a new record for the second quarter [1] Dividend Distribution - The company declared an interim cash dividend of 0.2896 USD per American Depositary Share or 0.0724 RMB per ordinary share [1] Sales Growth - The company’s Executive Director and Chairman, Ye Guofu, noted that same-store sales in mainland China turned positive in the June quarter and accelerated further into the September quarter [1] - The company anticipates positive same-store sales growth for the entire year in mainland China [1]

Core Viewpoint - CICC has raised the adjusted net profit forecast for MINISO (09896) for 2025/26 by 8%/6% to 2.9 billion/3.7 billion yuan due to the company's continuous improvement in operational performance [1] Group 1: Financial Performance - The company's 2Q25 revenue increased by 23% year-on-year to 5 billion yuan, and adjusted net profit grew by 11% to 690 million yuan, exceeding CICC's expectations mainly due to better-than-expected domestic revenue growth [2] - The company declared an interim dividend of 0.0724 USD per share, corresponding to a payout ratio of approximately 50% of adjusted net profit [2] - The gross profit margin in 2Q25 increased by 0.3 percentage points to 44%, benefiting from a higher proportion of overseas business with high gross margins and improved TOPTOY margins [4] Group 2: Domestic and International Business Performance - Domestic revenue in 2Q25 increased by 14% year-on-year to 2.6 billion yuan, with offline revenue up 12% to 2.4 billion yuan, and same-store sales turned positive despite a high base [3] - Overseas revenue grew by 29% year-on-year to 1.9 billion yuan, contributing 43% to MINISO's total revenue, with the U.S. market showing an impressive 80% increase [3] - The total number of stores increased by 94 during the quarter, with same-store sales improving to a low single-digit decline year-on-year [3] Group 3: Strategic Initiatives - The company continues to advance its IP strategy, having signed contracts with 9 artists for IP development, and is enhancing its own IP incubation [5] - The large store model has shown effectiveness, with 11 MINISO LAND stores and over 200 flagship stores established in China, contributing double-digit sales growth [5] - In the U.S. market, new store efficiency is 1.5 times that of older stores, with a nearly 30% higher sales per square meter [5]