Investment Rating - Maintain "Recommend" rating with a current price of HKD 38 70 [3] Core Views - Overseas and TOP TOY segments performed strongly with steady gross margin improvement and deepening IP strategy [2] - Revenue for 24Q1-3 reached RMB 12 281 billion yoy +22 8% with adjusted net profit of RMB 1 928 billion yoy +13 7% [4] - Overseas same-store sales showed high single-digit growth while TOP TOY achieved profitability for four consecutive quarters [4] - Gross margin improved to 44 1% in 24Q1-3 yoy +3 7pct driven by IP strategy and product mix optimization [4] - Sales expense ratio increased due to expansion of directly operated stores particularly in strategic overseas markets like the US [4] - The company is accelerating store expansion with 7 186 MINISO stores and 234 TOP TOY stores as of September 30 2024 [4] - IP strategy continues to expand with over 100 global IP collaborations and the launch of MINISO LAND a new store format [4] Financial Performance - 24Q1-3 revenue breakdown: Domestic RMB 7 738 billion yoy +22 8% Overseas RMB 4 543 billion yoy +41 5% [4] - Adjusted net profit margin for 24Q1-3 was 15 7% yoy -1 3pct excluding net exchange gains/losses [4] - FY2024E revenue is projected at RMB 15 391 billion yoy +34 1% with adjusted net profit of RMB 2 419 billion yoy +36 7% [7] - FY2024E gross margin is expected to reach 43 08% with a net profit margin of 15 71% [7] - ROE for FY2024E is forecasted at 24 94% with ROIC at 23 96% [7] Store Expansion - MINISO store count reached 7 186 as of September 30 2024 with 4 250 in China and 2 936 overseas [4] - TOP TOY store count reached 234 with 29 directly operated stores and 205 third-party stores [4] - The company plans to add 340-450 domestic MINISO stores and 550-650 overseas MINISO stores in 2024 [4] - As of 24Q3 domestic store expansion progress was 72%-93% while overseas progress was 69%-82% [4] IP Strategy - MINISO has collaborated with over 100 global IPs including Hello Kitty Barbie Harry Potter and Disney [4] - The new MINISO LAND store format launched in Shanghai with a monthly revenue of RMB 12 03 million during trial operation [4] - MINISO LAND stores are planned for key cities like Beijing Guangzhou and Chengdu further strengthening the IP-driven brand positioning [4] Valuation - FY2024E PE is projected at 16X with FY2025E and FY2026E PE at 13X and 11X respectively [4] - FY2025E and FY2026E net profit are forecasted at RMB 3 114 billion and RMB 4 167 billion respectively [4]
名创优品：海外及TOP TOY表现亮眼，毛利率稳步提升，IP战略布局持续深化