Company Overview - Company recently engaged with its Chairman and CEO, Ye Guofu, and the General Manager for the U.S. market, Tom Bartlebaugh, to discuss business strategies in the U.S. and globally [1] - The focus is on the company's IP strategy and refined operations in the U.S. market, which are expected to yield positive results [1] IP Strategy - The company is actively signing artists to enhance its own IP incubation, establishing a dual-track global IP ecosystem with both licensed and proprietary IP [1] - Management is confident in the company's unique advantages in full-category coverage, multi-channel penetration, global layout, and end-to-end operations, which facilitate collaborations with artists at relatively low costs [1] - Continuous improvement of IP collaboration and promotion mechanisms is underway, including a professional selection and elimination system to maintain the lifecycle and freshness of IP [1] Retail Strategy - The company is advancing channel enhancement and refined operations, opening high-potential stores like MINISO LAND in Shanghai and MINISOSPACE in Nanjing [1] - Management believes there is significant room for improvement in domestic stores, leveraging a large store strategy and iterative optimization to enhance brand upgrade and consumer loyalty [1] U.S. Market Operations - Tom Bartlebaugh brings 15 years of experience from similar companies in the U.S. and emphasizes a focus on user needs and disciplined, scientific business expansion [1] - The company sees strong competitive advantages in multi-category offerings, product quality, and IP development in the U.S. market [1] - The current strategy includes creating a family-oriented "one-stop" shopping experience to cater to various family members' needs [1] - Operational improvements are driven by data models for store location, staffing, and backend support, enhancing operational precision [1] - The company is testing various store formats, including Mall, Lifestyle Center, and Power Center, while developing a membership system for ongoing customer engagement [1] Financial Outlook - The company maintains a positive outlook on its IP strategy and overseas operational efficiency, projecting adjusted net profits of 2.9 billion and 3.7 billion yuan for 2025 and 2026, respectively [2] - Current valuations suggest a 19 times non-IFRS P/E for 2025, with a target price increase of 9% to 56.93 HKD and 29.38 USD, indicating a 17% upside potential [2]

Core Viewpoint - The report from CICC maintains a positive outlook on MINISO's IP strategy and overseas operational efficiency, projecting adjusted net profits of 2.9 billion and 3.7 billion yuan for 2025 and 2026 respectively, while raising the target price by 9% to 56.93 HKD and 29.38 USD [1] Group 1: IP Strategy and Global Ecosystem - The company is actively signing artists and increasing its own IP incubation, establishing a dual-track global IP ecosystem with both licensed and proprietary IP [1] - Management expresses confidence in the company's unique advantages in full-category coverage, multi-channel penetration, global layout, and full-link operations, which empower collaborations with artists while keeping costs relatively low [1] - The company is refining its IP collaboration and promotion mechanisms, creating a professional selection and elimination system to ensure the lifecycle and freshness of IP [1] Group 2: Domestic and International Operations - The company is enhancing channel operations and precision management by opening high-potential flagship stores like MINISO LAND in Shanghai and MINISO SPACE in Nanjing, believing there is significant room for improvement in domestic stores [1] - The management aims to drive brand upgrades and strengthen consumer loyalty through a large store strategy and iterative optimization [1] - The company focuses on user needs and aims for controlled, scientific business expansion, with strong competitiveness in multi-category offerings, product quality, and IP development in the U.S. market [2] Group 3: Operational Efficiency and Market Positioning - The company is creating a family-oriented "one-stop" shopping experience to meet diverse shopping needs of different family members [2] - Operationally, the company utilizes data models to enhance store location selection, staffing, and backend support, improving operational precision [2] - The company is leveraging IP and seasonal events to generate excitement, using everyday products for high-frequency repurchases while promoting high-quality IP and cost-effective products [2]

Core Viewpoint - The report from CICC maintains a positive outlook on MINISO's IP strategy and overseas operational efficiency, projecting adjusted net profits of 2.9 billion and 3.7 billion yuan for 2025 and 2026 respectively, while raising the target price by 9% to HKD 56.93 and USD 29.38 [1] Group 1 - The company is actively signing artists and increasing its own IP incubation, building a dual-track global IP ecosystem with licensed and proprietary IP [1] - Management expresses confidence in the company's unique advantages in full-category coverage, multi-channel penetration, global layout, and full-link operations, which enhance collaboration with artists while keeping costs relatively low [1] - The company is refining its IP collaboration and promotion mechanisms, establishing a professional selection and elimination system to ensure the lifecycle and freshness of IP [1] Group 2 - The management emphasizes the need to focus on user needs and expand the business in a measured and scientific manner [2] - The company believes its U.S. operations possess strong competitive advantages in multi-category offerings, product quality, and IP development, while also working on a family-oriented "one-stop" shopping experience [2] - Operationally, the company utilizes data models to drive precise store location selection, staffing, and backend support, enhancing operational efficiency [2]

Core Viewpoint - The company aims to transform from a traditional manufacturing entity into a cultural platform by leveraging high-profile IPs like CR7 and PSGA, thereby enhancing its brand value and market presence [1][7][9]. Group 1: Strategic Partnerships - The collaboration with PSGA represents a significant opportunity for the company, allowing it to tap into youth sports education, co-branded product development, and event management [2][3]. - The company plans a three-step approach to maximize value from the PSGA partnership, focusing on promoting PSGA training programs in schools, obtaining event operation licenses, and extending PSGA's brand into high-end international schools in mainland China [3][4]. Group 2: IP Strategy - The company is building a comprehensive IP strategy that encompasses both individual and organizational IPs, aiming to create a multi-faceted IP ecosystem that includes sports, entertainment, and cultural figures [4][5]. - The CR7 museum has become a significant cultural attraction, contributing to ticket sales and enhancing the company's brand recognition [5][6]. Group 3: Transformation and Innovation - The company is actively transforming its traditional manufacturing base by integrating IP into its operations, which helps address low profit margins in manufacturing while enhancing product value through IP [5][6]. - The company has registered a new brand and plans to expand its product matrix beyond apparel into areas like sports animation and functional fabrics, indicating a strategic pivot towards innovation [6][7]. Group 4: Vision and Identity - The company is redefining its identity from a mere manufacturer to a cultural platform, aiming to inspire youth through sports and education while fostering a sense of national pride [7][9]. - The ultimate vision is to utilize world-class IPs to ignite cultural confidence and showcase the capabilities of Chinese enterprises in storytelling and product excellence [8][9].

Core Insights - The company aims to transform from a traditional manufacturing entity into a cultural platform by leveraging high-profile IPs like Cristiano Ronaldo (CR7) and Paris Saint-Germain Academy (PSGA) to enhance its brand and market presence [1][7][9] Group 1: Strategic Partnerships - The collaboration with PSGA represents a significant opportunity for the company, allowing it to tap into youth sports education, co-branded product development, and event management [2][3] - The company plans a three-step approach to maximize value from the PSGA partnership, focusing on promoting PSGA training programs in schools, obtaining event operation licenses, and extending PSGA's brand into high-end international schools in mainland China [3][4] Group 2: IP Strategy - The company is building a comprehensive IP ecosystem that includes individual and organizational IPs, aiming to cover sports, entertainment, anime, and cultural celebrities [4][5] - The CR7 museum has become a significant tourist attraction, contributing to ticket sales and enhancing the company's brand recognition [5][6] Group 3: Transformation and Growth - The company is actively adapting its traditional manufacturing operations to meet market demands, including establishing production capabilities in Southeast Asia and investing in smart manufacturing and high-end functional fabrics [6][7] - The "IP + manufacturing" strategy is designed to address low profit margins in traditional manufacturing while enhancing profitability through IP value [6][7] Group 4: Vision and Identity - The company is redefining its identity, moving from a mere manufacturer to a cultural platform that integrates sports, education, and culture [7][9] - The ultimate goal is to ignite national cultural confidence through world-class IPs and showcase the capability of Chinese enterprises to tell compelling stories [7][8][9]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][24][27] Core Views - The company reported a slight improvement in revenue in Q2, with a year-on-year revenue decline narrowing to single digits. For H1 2025, revenue was 10.81 billion yuan, down 2.2%, and net profit attributable to shareholders was 560 million yuan, down 12.0% [1][3] - The traditional core business experienced a slight decline, while online sales maintained positive growth. The revenue from traditional core business in H1 2025 was down 7.2% year-on-year, with specific declines in writing instruments, student stationery, and office supplies [1][3] - The company is actively expanding its IP strategy and overseas markets, achieving overseas revenue of 560 million yuan, up 15.9% [2][3] Financial Performance Summary - In Q2 2025, the company achieved a revenue of 5.56 billion yuan, with a net profit of 240 million yuan, reflecting a decrease of 5.6% year-on-year [1][3] - The gross margin for Q2 was 18.3%, down 0.34 percentage points, primarily due to the decline in profitability from direct sales and retail stores [3] - The company has adjusted its profit forecast for 2025-2027, expecting net profits of 1.43 billion, 1.58 billion, and 1.76 billion yuan respectively, with a diluted EPS of 1.55, 1.72, and 1.91 yuan [3][4] Revenue and Profit Forecast - The projected revenue for 2025 is 25.42 billion yuan, with a growth rate of 4.9% [4] - The projected net profit for 2025 is 1.43 billion yuan, reflecting a year-on-year increase of 2.5% [4] - The company’s PE ratios for 2025, 2026, and 2027 are expected to be 19.9, 18.0, and 16.2 respectively [4][25]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 20% in stock price compared to the market benchmark within the next six months [18]. Core Insights - The company reported a revenue of 10.8 billion yuan for the first half of 2025, a year-on-year decrease of 2.2%, and a net profit attributable to shareholders of 560 million yuan, down 12.0% year-on-year [3][4]. - The second quarter revenue was 5.56 billion yuan, showing a slight decline of 0.04% year-on-year, while the net profit was 240 million yuan, down 5.6% year-on-year [3][4]. - The company is focusing on its IP and international expansion strategies, with significant growth in overseas revenue, which reached 560 million yuan, up 15.9% year-on-year [4]. Financial Performance Summary - The company's gross margin for the first half of 2025 was 19.5%, an increase of 0.04 percentage points year-on-year, with specific product categories showing varied performance in gross margins [5]. - The net profit margin for the first half of 2025 was 5.15%, a decrease of 0.6 percentage points year-on-year, despite an increase in non-operating income from government subsidies [5]. - The report forecasts net profits for 2025, 2026, and 2027 to be 1.44 billion yuan, 1.60 billion yuan, and 1.76 billion yuan respectively, with growth rates of 3.1%, 10.8%, and 10.4% [5].

Group 1 - The total box office for the summer of 2025 has surpassed 11.644 billion yuan, exceeding the performance of the summer of 2024 [1] - The sales of movie-related merchandise have seen a significant increase, with a 120% year-on-year growth in revenue from derivative products [1] - The market for movie derivative products has reached a scale of over 100 billion yuan, driven by young consumers seeking emotional connection and identity through these products [1] Group 2 - There is a scarcity of derivative products that can maintain market heat and vitality post-movie release, as some films lack deep cultural content and lasting artistic appeal [2] - The development of derivative products in China is hindered by a lack of systematic and professional approaches, leading to a variety of product quality and limited design categories [2] - The essence of derivative products lies in their ability to transform audience emotional dependencies and value recognition into tangible items, which requires a strong cultural foundation of the IP [2] Group 3 - Young consumers increasingly demand diverse aesthetics, making it essential for derivative products to possess storytelling, artistic value, and collectibility to attract market interest [3] - The industry must innovate marketing strategies and deepen emotional connections with consumers through social media and fan communities, creating long-term interaction mechanisms [3] - Strengthening cross-industry collaboration is crucial for the growth of cultural IP, encouraging partnerships between film companies, design firms, manufacturers, and sales platforms to develop a standardized derivative product system [3]

Core Insights - The retail industry is undergoing significant transformation as it enters a new phase of "rational consumption" and "quality upgrade," with Miniso leveraging its "high-quality low-price" strategy and global expansion to carve out a unique development path [1] - Miniso's impressive growth trajectory is reflected in its financial performance for 2024, with revenue increasing by 22.8% to 17 billion yuan, gross margin reaching a historical high of 44.7%, and net profit rising by 15.4% to 2.72 billion yuan [1] - The overseas market has shown remarkable performance, with revenue up 42% to 6.8 billion yuan, contributing 39.3% to overall revenue, and a net increase of 1,219 stores, including 631 overseas [1] Globalization Strategy - Miniso's globalization strategy has evolved from simple overseas store openings to a new phase of "regional deepening and precise penetration," aiming to exceed 3,000 overseas stores by 2025, covering over 100 countries and regions, with overseas revenue accounting for over 40% [2][4] - In the U.S., Miniso has established a dense retail network with 275 stores, offering high-cost performance home goods and trendy accessories that appeal to young consumers [2] - The Southeast Asian market, with a growing middle class, has seen strong demand for high-cost performance home goods, prompting Miniso to adopt a "regional center warehouse + local supply chain" model to enhance market responsiveness [4] Product Innovation and IP Strategy - Miniso's product innovation has progressed beyond low-cost homogeneity to focus on "precise demand and emotional value," with over 15,000 SKUs developed based on consumption data from over 50 million members [6] - The 2024 launch of the "smart home" series, which includes products like USB interface lamps, achieved sales of over 500 million yuan within three months, showcasing Miniso's market insight [6] - The deepening of IP strategy has significantly enhanced product value, with collaborations with over 80 IPs in 2024 leading to successful marketing events and increased customer engagement [8] Digital Operations - Digital capabilities have become the core support for Miniso's refined operations, establishing a comprehensive digital system from front-end to back-end, including a global supply chain management system in collaboration with Huawei Cloud [10] - The digital membership system has enhanced user stickiness, accumulating 50 million member data and enabling personalized services that significantly boost repurchase rates [11] - The launch of a "membership points mall" in 2024 has increased member activity to 65%, providing stable support for revenue growth [13] Future Outlook - Miniso's growth logic is becoming clearer, with continued overseas market penetration expected to unlock revenue potential, while the deepening of IP strategy will enhance product value [14] - The company aims to maintain flexibility in localization while injecting emotional value into its cost-performance offerings, positioning itself as a leading global IP design retail group [15]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6][15]. Core Insights - The company reported a total revenue of 4.97 billion yuan for Q2 2025, representing a year-on-year growth of 23.1%. For the first half of 2025, revenue reached 9.39 billion yuan, up 21.1% year-on-year [1]. - The company's gross profit margin improved to 44.3%, an increase of 0.4 percentage points year-on-year, while the adjusted net profit for Q2 was 0.692 billion yuan, reflecting a 10.6% increase year-on-year [1]. - The company has expanded its global store network, surpassing 7,900 stores worldwide, with a net increase of 108 stores in the first half of 2025 [2]. Revenue Breakdown - In Q2 2025, the domestic revenue in mainland China was 2.62 billion yuan, growing 13.6% year-on-year, while overseas revenue reached 1.94 billion yuan, marking a 28.6% increase [1]. - The TOPTOY segment achieved revenue of 0.4 billion yuan in Q2 2025, with an impressive growth rate of 87% [1]. Domestic Market Performance - The domestic same-store sales showed positive growth, with the number of franchisees reaching a historical high. The company anticipates continued same-store sales growth for the full year of 2025 [3]. - The company added 30 new stores in mainland China during Q2 2025, including 7 MINISO LAND stores, enhancing its presence in key cities [3]. International Expansion - The overseas revenue accounted for 39% of total revenue in Q2 2025, with significant growth in various regions, particularly in North America, where revenue increased by 69.7% [4]. - The company opened flagship stores in major global cities, reinforcing its brand presence internationally [4]. TOPTOY Growth - The TOPTOY segment is identified as a second growth engine, with a revenue increase of 87% in Q2 2025. The company has partnered with international IPs and signed contracts with several popular toy artists [5]. - The valuation of TOPTOY reached approximately 10 billion HKD after investment from Temasek, indicating strong market recognition [5]. Future Projections - The company is expected to achieve revenues of 21.2 billion yuan and 25.1 billion yuan for 2025 and 2026, respectively, with adjusted net profits projected at 2.8 billion yuan and 3.8 billion yuan [5].