Haitong Securities International·2025-08-22 08:17Investment Rating - The report maintains an OUTPERFORM rating for MINISO Group, with a target price of USD 27.30, reflecting a potential upside from the current price of USD 22.17 [2][20]. Core Insights - MINISO's 2Q performance exceeded expectations, with revenue reaching RMB 4.97 billion, a 23% year-over-year increase, surpassing the guidance of 18%-21% [3][18]. - The company is focusing on large store formats and interest-driven consumption to drive global expansion, with plans to open 100-150 new stores in 2025 [4][5]. - The domestic revenue was RMB 2.62 billion, up 14% year-over-year, while overseas revenue was RMB 1.94 billion, up 29% year-over-year [18][19]. - The adjusted net profit for 2Q was RMB 691 million, an 11% increase year-over-year, with an adjusted net profit margin of 13.9% [19][20]. Financial Performance Summary - Revenue projections for 2025-2027 are RMB 21.5 billion, RMB 25.5 billion, and RMB 30.1 billion, respectively, with adjusted net profits of RMB 3.04 billion, RMB 3.63 billion, and RMB 4.37 billion [20]. - The gross profit margin (GPM) improved to 44.3%, up 0.3 percentage points year-over-year, driven by increased contributions from overseas direct sales [19]. - The sales expense ratio increased to 23.4%, up 2.9 percentage points year-over-year, while the general and administrative expense ratio decreased to 5.3%, down 0.4 percentage points year-over-year [19]. Store Expansion and Strategy - As of the end of 2Q, MINISO had 4,305 domestic stores, with a net addition of 30 stores in the quarter, indicating a faster pace of store openings than market expectations [4][5]. - The overseas store count reached 3,307, with a net addition of 94 stores in 2Q, including 31 new directly operated stores [5][18]. - The company plans to continue enhancing store quality over expansion speed, particularly in the U.S. market, where it aims to open 80 new stores by 2025 [5][9].