Summary of Miniso (MNSO) Investor Meeting Company Overview - **Company**: Miniso (MNSO) - **Industry**: Retail, focusing on IP (Intellectual Property) products and lifestyle goods Key Points from the Meeting 1. Growth and Performance - Management expressed confidence in achieving solid topline growth and operational improvements, particularly in the US market, supporting margin performance for Q3 and the upcoming holiday season [1][8] - The company is on track for healthy and quality growth, with expectations for better performance than the previous year due to improved product planning and execution [8][9] 2. Strategic Focus Areas - **Self-owned IP Development**: Miniso aims to become a global leading IP platform, leveraging its supply chain and marketing strengths to attract IP artists [1][9] - **Store Strategy**: Transitioning from fragmented store openings to cluster openings to enhance brand awareness and marketing efficiency [6][8] - **Real Estate Strategy**: Focus on larger store formats (7,000 to 12,000 square feet) in high-traffic areas, with a target of 1,500 to 2,000 stores in the US market [8][9] 3. Market Positioning - Miniso's diversified product offering positions it as a one-stop shopping destination for families, with a mix of competitive IP goods and value products [8][9] - The company has a competitive advantage in product quality and affordability compared to local peers [8][9] 4. Operational Improvements - Implementation of a data-centric operation system has improved inventory turnover by 10% compared to the previous year [6][8] - Hiring local talents and building a data-driven labor model to enhance labor allocation and efficiency [6][8] 5. Financial Outlook - Management reiterated a commitment to sustainable same-store sales growth (SSSG) and expects to deliver better performance in Q4 due to well-planned products and marketing strategies [8][9] - The company is well-prepared for the second half of the year with inventory management strategies to mitigate tariff impacts [8][9] 6. Recent Developments - Miniso opened an IP Land store in Guangzhou, achieving monthly sales of RMB 7 million to 8 million with a payback period of only 3-4 months [9][10] - The company is considering channel upgrades in markets like Indonesia, where it entered earlier [10] Additional Insights - Management believes that 2/3 of Miniso's stores in China are worth upgrading to enhance brand equity and attract better rental terms [10] - The company is positioned to capture synergies with its Top Toy brand, which focuses on pop toys, while Miniso covers a broader category range [10] Investment Thesis - Miniso is rated as a "Buy" with a 12-month price target of $29 for ADR and HK$56 for H-share, reflecting a near-term growth outlook and potential for a 20% adjusted net income CAGR from 2024 to 2026 [15][16] Risks - Key risks include lower store productivity due to competition, geopolitical risks, and higher-than-expected operational expenses [15][16]

Summary of Conference Call Notes Industry Overview - The conference call discusses the **China Consumer** sector, focusing on consumption trends and market dynamics in **2Q25** and the outlook for **2H25** [1][2]. Key Points and Arguments 1. **Consumption Trends**: - Demand softened in **2Q25**, with unexciting demand continuing into **3Q25**. Some categories like restaurants, sportswear, prepared food, and spirits showed minor sequential improvements in August, attributed to normalizing policy impacts [1][2]. - Companies maintain a prudent outlook due to demand uncertainty, with expectations for significant demand-side stimulus being unlikely in the near term [1]. 2. **Pricing Dynamics**: - There are downside risks to pricing in categories such as sportswear and spirits due to demand softness. The restaurant sector is experiencing intensified pricing activities driven by food delivery subsidies and market education on new categories [1][2]. 3. **Structural Growth Opportunities**: - Continued demand for experience-based consumption, particularly in IP retailers, freshly made drinks, and pet foods [2]. - Opportunities for category expansion and penetration in beverages, cosmetics, and pet foods, with companies like Laopu experiencing upward brand cycles [2]. - Overseas expansion remains a growth opportunity, especially in home appliances, despite demand uncertainties [2]. - Lower-tier cities present untapped potential for various categories [2]. 4. **Sector Preferences**: - Preferred sectors include sports brands, diversified retailers, beverages, and pet food. Least preferred sectors are apparel/footwear OEM, furniture, projectors, and non-super-premium spirits [3][8]. 5. **Stock Recommendations**: - Buy recommendations include companies like Anta, Eastroc, Midea, and WH Group, while jewelry has been upgraded to Neutral due to stabilized sentiment [8]. 6. **Market Sentiment**: - The market is showing interest in turnaround themes, with shareholder returns supporting stock prices [2]. Additional Important Content - The macroeconomic environment remains resilient, but consumption-related indicators are muted. The GS macro team anticipates limited significant demand-side stimulus due to the stable GDP numbers [1][9]. - The report highlights a divergence in performance among companies, with stronger brands gaining market share while weaker ones struggle [9]. - The conference call also touches on the impact of policy changes, including temporary interest and childbirth subsidies, which may influence consumer behavior [1]. Conclusion - The China Consumer sector is navigating a challenging landscape with softer demand and pricing pressures. However, structural growth opportunities and strategic sector preferences present potential investment avenues. The outlook remains cautious, with companies focusing on prudent strategies to manage uncertainties in demand and pricing.