Core Viewpoint - The company's Q2 2025 performance exceeded expectations, driven by strong domestic revenue growth and impressive overseas performance, particularly in the U.S. market [1][2]. Financial Performance - Q2 2025 revenue increased by 23% year-on-year to 5 billion yuan, while adjusted net profit rose by 11% to 690 million yuan, outperforming expectations [1]. - The company declared an interim dividend of $0.0724 per share, corresponding to a payout ratio of approximately 50% of adjusted net profit [1]. - Gross margin improved by 0.3 percentage points to 44%, benefiting from a higher proportion of overseas business and improved margins in the TOPTOY segment [2]. Business Segments - Domestic same-store sales turned positive with a 14% increase in revenue to 2.6 billion yuan, despite a high base, while online sales grew by 31% to 270 million yuan [1]. - Overseas revenue increased by 29% to 1.9 billion yuan, contributing 43% to total revenue, with U.S. revenue surging by 80% [1]. - TOPTOY's revenue grew by 87% to 400 million yuan, with a net increase of 13 stores, maintaining rapid growth [1]. Strategic Initiatives - The company is investing in direct sales and increasing sales expenses to support long-term growth, particularly in strategic overseas markets [2]. - The IP strategy and large store model are showing positive results, with 11 MINISO LAND stores and over 200 flagship stores established in China [2]. - The U.S. channel is gradually improving, with new stores achieving 1.5 times the efficiency of older stores and nearly 30% higher sales per square meter [2]. Future Outlook - Management expects Q3 2025 performance to maintain accelerated growth, raising the full-year guidance to a revenue increase of approximately 25% [3]. - Adjusted net profit forecasts for 2025 and 2026 have been raised by 8% and 6% to 2.9 billion yuan and 3.7 billion yuan, respectively [3]. - The target prices for Hong Kong and U.S. stocks have been increased by 24% to 52.45 HKD and 27.07 USD, respectively, reflecting a 20 times 2025 non-IFRS P/E ratio [3].

Core Viewpoint - CICC has raised the adjusted net profit forecast for MINISO (09896) for 2025/26 by 8%/6% to 2.9 billion/3.7 billion yuan due to the company's continuous improvement in operational performance [1] Group 1: Financial Performance - The company's 2Q25 revenue increased by 23% year-on-year to 5 billion yuan, and adjusted net profit grew by 11% to 690 million yuan, exceeding CICC's expectations mainly due to better-than-expected domestic revenue growth [2] - The company declared an interim dividend of 0.0724 USD per share, corresponding to a payout ratio of approximately 50% of adjusted net profit [2] - The gross profit margin in 2Q25 increased by 0.3 percentage points to 44%, benefiting from a higher proportion of overseas business with high gross margins and improved TOPTOY margins [4] Group 2: Domestic and International Business Performance - Domestic revenue in 2Q25 increased by 14% year-on-year to 2.6 billion yuan, with offline revenue up 12% to 2.4 billion yuan, and same-store sales turned positive despite a high base [3] - Overseas revenue grew by 29% year-on-year to 1.9 billion yuan, contributing 43% to MINISO's total revenue, with the U.S. market showing an impressive 80% increase [3] - The total number of stores increased by 94 during the quarter, with same-store sales improving to a low single-digit decline year-on-year [3] Group 3: Strategic Initiatives - The company continues to advance its IP strategy, having signed contracts with 9 artists for IP development, and is enhancing its own IP incubation [5] - The large store model has shown effectiveness, with 11 MINISO LAND stores and over 200 flagship stores established in China, contributing double-digit sales growth [5] - In the U.S. market, new store efficiency is 1.5 times that of older stores, with a nearly 30% higher sales per square meter [5]

Core Viewpoint - The company Miniso (09896) has shown continuous improvement in operational performance, leading to an upward revision of adjusted net profit forecasts for 2025/26 by 8%/6% to 2.9 billion/3.7 billion yuan, with a target price increase of 24% for both Hong Kong and US stocks [1][2] Group 1: Financial Performance - In Q2 2025, the company's revenue increased by 23% year-on-year to 5 billion yuan, and adjusted net profit rose by 11% to 690 million yuan, exceeding expectations mainly due to strong domestic business growth [2][3] - The gross profit margin increased by 0.3 percentage points to 44%, benefiting from a higher proportion of overseas business and improved margins from TOPTOY [4] - The company declared an interim dividend of 0.0724 USD per share, corresponding to a payout ratio of approximately 50% of adjusted net profit [2] Group 2: Domestic and International Business Performance - Domestic revenue in Q2 2025 grew by 14% to 2.6 billion yuan, with offline revenue increasing by 12% to 2.4 billion yuan, and online revenue up by 31% to 270 million yuan [3] - Overseas revenue increased by 29% to 1.9 billion yuan, contributing 43% to total business revenue, with the US market showing an impressive 80% growth [3] - The total number of stores increased by 94 during the quarter, with same-store sales improving despite a high base [3] Group 3: Strategic Initiatives - The company is advancing its IP strategy by signing contracts with 9 artists and enhancing its own IP incubation [5] - The large store model has been effective, with 11 MINISO LAND stores and over 200 flagship stores established, contributing significantly to sales [5] - The new store efficiency in the US is 1.5 times that of older stores, with a nearly 30% higher sales per square meter [5]

Core Insights - The home furnishing industry has faced multiple challenges since 2025, including shrinking consumer demand and intensified channel competition, with most listed companies reporting revenue declines in Q1 2025, except for Lin's Home, which showed significant growth [1][3] Group 1: Company Performance - Lin's Home achieved remarkable performance during the May Day holiday in 2025, with a 123% year-on-year increase in flagship store sales and an 89% increase in overall store sales [1] - During the 315 promotion in 2025, Lin's Home's new retail model saw a 34.5% year-on-year increase in average sales per store, with flagship stores achieving over 1.85 million yuan in average sales [1][3] Group 2: Strategic Initiatives - Lin's Home launched its "City Flagship Store" strategy in early 2024, which has proven effective in navigating the industry's challenges and has led to significant improvements in customer traffic and profitability across its stores [4][6] - The flagship stores, designed with over 1,000 square meters, have become industry benchmarks, achieving monthly profitability across all locations by May 2025 [4][6] Group 3: Consumer Experience and Store Design - The flagship stores emphasize a "space reconstruction" philosophy, moving from a product-centric approach to creating immersive experiences, showcasing over 20 home styles and dedicated product display areas [7][8] - The store layout enhances customer experience by providing a spacious and visually appealing environment, encouraging longer visits and better product engagement [8][9] Group 4: Product Offering and Market Trends - The flagship stores offer an extensive product matrix, displaying 80% more products than standard stores, catering to various home scenarios and aligning with current consumer trends [9][12] - Lin's Home's strategy reflects a response to the "whole home" trend, allowing consumers to complete their home furnishing needs in one location [9][12] Group 5: Digital and New Retail Strategy - Lin's Home has developed a differentiated new retail model that leverages digital capabilities to enhance customer acquisition and conversion, achieving over 40% growth in customer retention metrics in 2024 [16][18] - The company has committed significant resources to enhance online presence across multiple platforms, aiming to drive traffic to physical stores and improve overall sales performance [15][18] Group 6: Industry Implications - Lin's Home's approach highlights the importance of creating unique consumer experiences in physical stores, suggesting that the value of retail locations lies in their ability to offer irreplaceable experiences rather than mere scale [20] - The company's success indicates that the future of retail will rely on integrating digital strategies with physical experiences to enhance customer engagement and operational efficiency [20]