MNSO(MNSO)2024-09-02 06:03Investment Rating - The report maintains an "OUTPERFORM" rating for MINISO Group (MNSO US) with a target price of USD 25.40, down from a previous target of USD 31.30 [2][6]. Core Insights - MINISO reported solid performance in Q2 2024, with revenue reaching RMB 4.04 billion, a year-on-year increase of 24%. The gross profit margin (GPM) hit a record high of 43.9%, up 4.1 percentage points year-on-year [10]. - The company plans to implement a share repurchase program with a maximum limit of HKD 2 billion over the next 12 months and declared an interim dividend of RMB 620 million, approximately 50% of the adjusted net profit for the first half of the year [4][10]. - Domestic revenue was RMB 2.53 billion, up 18% year-on-year, while overseas revenue reached RMB 1.51 billion, up 35% year-on-year [10]. Financial Performance Summary - Revenue projections for 2024-2026 are RMB 17.3 billion, RMB 21.2 billion, and RMB 25.4 billion, respectively, with adjusted net profits expected to be RMB 2.82 billion, RMB 3.47 billion, and RMB 4.14 billion [6][10]. - The adjusted net profit for Q2 2024 was RMB 625 million, a 9% increase year-on-year, with an adjusted net profit margin of 15.5% [10]. - The company’s operating expenses ratio increased to 20.5%, up 5.8 percentage points year-on-year, while the general and administrative expense ratio was 5.6%, up 0.5 percentage points year-on-year [10]. Store Expansion and Market Dynamics - As of June 30, 2024, MINISO had 4,115 domestic stores, with a net increase of 81 stores in the quarter. The overseas store count reached 2,753, with a net increase of 157 stores [4][10]. - The company’s O2O (Online to Offline) business grew nearly 80% year-on-year, supporting same-store sales recovery to 98.3% of the previous year's levels [4][10]. - The report highlights that the direct sales market remains a key growth driver, with a 79% year-on-year increase in gross merchandise value (GMV) for direct sales [10].