MNSO(US:MNSO)2024-02-17 16:00Investment Rating - The report maintains a "Buy" rating for Miniso with a target price of $22.30, representing a potential upside of 38.0% from the current price of $16.16 [1][36]. Core Insights - Miniso aims to evolve into the world's leading IP design retail group with ambitious growth targets for 2024-2028, including the addition of 900-1100 stores annually and a revenue CAGR of no less than 20% [5][9]. - The company is focusing on enhancing its IP strategy and local sourcing, with a goal for IP products to account for over 50% of sales by 2028 [5][9]. - Despite geopolitical risks, the company is optimistic about its global expansion potential, leveraging its competitive advantages in supply chain integration and product design innovation [7][28]. Financial Overview - As of February 7, 2024, Miniso's total market capitalization is $5.11 billion, with total assets of $1.90 billion and net assets of $1.20 billion [2]. - The company reported a significant increase in revenue and profit, with projected revenues for FY24E, FY25E, and FY26E at RMB 151.4 billion, RMB 184.4 billion, and RMB 223.3 billion, respectively, reflecting year-on-year growth rates of 32%, 22%, and 21% [8][36]. - The Non-IFRS net profit for FY24E, FY25E, and FY26E is expected to be RMB 24.9 billion, RMB 30.4 billion, and RMB 37.1 billion, with growth rates of 36%, 22%, and 22% respectively [8][36]. Market Position and Strategy - Miniso's strategy includes a focus on localizing its product offerings and enhancing store experiences to drive growth in overseas markets, particularly in North America and Latin America [6][20]. - The company has successfully established a strong presence in various international markets, with a significant number of stores in Europe, Latin America, and North America, and aims to reach 1,000 stores in these regions by 2028 [20][24]. - The report highlights Miniso's competitive edge over Japanese retailers like Daiso and MUJI, particularly in terms of global expansion capabilities and supply chain efficiency [29][32].