2024-09-13 06:40Investment Rating - The report maintains a "Buy" rating for MINISO, indicating strong expected performance relative to the market [6][14]. Core Insights - MINISO reported a 2Q24 revenue of RMB 4.04 billion, reflecting a year-on-year increase of 24.1%, with a historic high gross margin of 43.9% [4][9]. - The company's adjusted net profit reached RMB 630 million, up 9.4% year-on-year, demonstrating solid financial health [4][9]. - The domestic market showed high-quality growth, with revenue from mainland China reaching RMB 2.53 billion, a year-on-year increase of 18.1% [5][10]. - The overseas market saw significant expansion, with 2,753 stores as of 2Q24, a 157-store increase quarter-on-quarter, and revenue growth of 109.3% year-on-year [5][11]. - The gross profit margin improved due to a higher proportion of direct sales and effective implementation of IP and brand upgrade strategies [5][12]. - The company has initiated share buybacks and dividends, reinforcing its commitment to shareholder returns [5][13]. Summary by Sections Financial Performance - MINISO's 2Q24 revenue was RMB 4.04 billion, with a gross margin of 43.9% and adjusted EBITDA of RMB 1.0 billion [4][9]. - The adjusted net profit for 2Q24 was RMB 630 million, reflecting a 9.4% increase year-on-year [4][9]. Domestic Market Growth - Revenue from the mainland market reached RMB 2.53 billion, with the core business contributing RMB 2.31 billion, up 18.3% year-on-year [5][10]. - The number of domestic stores increased to 4,115, with same-store sales recovering to 98.3% of the previous year's level [5][10]. Overseas Expansion - The overseas store count reached 2,753, with a revenue contribution of RMB 1.51 billion, accounting for 37.4% of total revenue [5][11]. - Same-store sales in the overseas market grew by 16.3%, with a significant increase in direct sales contribution [5][11]. Profitability and Cost Management - The gross profit margin increased from 39.6% to 43.7% year-on-year, attributed to a higher proportion of direct sales and product upgrades [5][12]. - Selling expenses rose to RMB 83 million, accounting for 20.5% of revenue, indicating a need for effective cost control measures [5][12]. Shareholder Returns - The company repurchased shares and announced a cash dividend of RMB 621 million, representing 50% of adjusted net profit [5][13]. - A new share buyback plan of up to HK$2 billion was also announced, reflecting management's confidence in future business prospects [5][13].