Core Viewpoint - The report from Guosen Securities indicates that MINISO (09896) is optimizing its domestic store strategy, improving operational efficiency, and enhancing same-store sales, while its IP strategy strengthens global competitiveness and drives overseas business and TOP TOY brand development [1] Financial Performance - In Q2, MINISO achieved revenue of 4.966 billion, a year-on-year increase of 23.1%, exceeding the previous guidance of 18%-21% [1] - Operating profit reached 836 million, up 11.3% year-on-year, while adjusted net profit was 692 million, reflecting a 10.6% increase, with an adjusted net profit margin of 13.9% [1] Management Guidance - The management has raised the full-year guidance, expecting Q3 overall revenue growth of 25-28%, with domestic MINISO brand revenue growth in the mid to high double digits and overseas revenue growth accelerating to 30%-35% [2] Domestic Market Performance - In Q2, MINISO's domestic revenue was 2.62 billion, a year-on-year increase of 13.6%, with same-store sales turning positive [3] - The company opened 30 new stores in Q2, reversing the previous trend of net store closures, focusing on MINISOLAND and flagship stores [3] Growth Drivers - Same-store growth is driven by several factors, including organizational improvements, enhanced product offerings, and optimized operations during holidays [4] International Expansion - MINISO's overseas revenue reached 1.94 billion, a year-on-year increase of 28.6%, with a net addition of 94 stores in Q2 [5] - The company plans to continue expanding its store network, targeting over 500 new stores for the year [5] North America Strategy - The North American market strategy focuses on large store formats, cluster openings, and deepening the toy category to enhance brand presence and operational efficiency [6][7] TOPTOY Brand Development - TOPTOY achieved revenue of 400 million in Q2, a year-on-year increase of 87%, with a focus on enhancing its own brand and IP sales contributions [8] Store Format Strategy - The company is implementing a large store strategy, with significant investments in MINISOLAND and flagship stores, achieving higher sales efficiency compared to smaller formats [9] IP Strategy - MINISO is enhancing its IP strategy by focusing on both artist IP and top international licensed IP, with plans to launch self-owned IP products in overseas markets [10]