Core Insights - The emotional healing industry is emerging as a response to increasing mental health issues, with 4% of the global population suffering from anxiety disorders according to WHO data [2][3] - The report focuses on the development trajectory of the emotional healing industry in China, identifying audience demographics and industry trends to provide insights for stakeholders [3][4] Industry Background - The Chinese government has elevated mental health and psychological well-being to a strategic priority, creating unprecedented opportunities for the emotional healing industry [4][6] - The industry has developed a multi-layered ecosystem involving self-healing, digital platforms, AI psychological healing, and comprehensive offline healing institutions [4][20] User Insights - A survey of 1,561 respondents revealed that nearly 50% faced anxiety and stress issues, with 52.79% reporting mental health deterioration as a primary consequence [35][38] - The emotional healing market shows a significant user interest, with 70% of users focusing on sleep, stress relief, and relaxation [40][59] Development Trends - The emotional healing industry is predicted to solidify its base among middle to high-income individuals, particularly targeting educated women for service penetration [5][65] - Technological advancements are driving the industry into a dual upgrade phase of efficiency and service, reshaping the emotional healing ecosystem [5][68] - The industry is evolving through three stages: standardization, collaboration, and intelligence, which will drive comprehensive development for enterprises [5][71] Market Characteristics - The emotional healing market is characterized by high financing activity, with leading companies completing multiple funding rounds, indicating strong investor confidence [24] - The market is transitioning from single services to an ecological, full-chain model, emphasizing both technological empowerment and personalized services [24][68] Consumer Behavior - Users generally invest between 1,001 to 5,000 yuan in emotional healing services, with a focus on immediate relief and long-term interventions [47][42] - The decision-making process for self-healing and lifestyle enhancement is influenced by authority certification and effectiveness, while digital platforms prioritize therapeutic outcomes and service professionalism [50][53] Satisfaction and Expectations - Approximately 54.7% of users express satisfaction with emotional healing measures, with lifestyle products receiving the highest satisfaction ratings at 70.1% [59][62] - Users expect improved services and effective outcomes from emotional healing methods, indicating a significant area for industry growth [62][68]

Core Insights - The emotional healing industry is emerging as a response to increasing mental health issues, with 4% of the global population suffering from anxiety disorders, highlighting a growing demand for emotional value and solace [2][3] - The report focuses on the development trajectory of the emotional healing industry in China, identifying audience demographics and industry trends to provide insights for stakeholders [2][3] Industry Background - The Chinese government has elevated mental health and wellness to a strategic priority, creating unprecedented opportunities for the emotional healing industry [3][7] - The industry has developed a multi-layered ecosystem with participants from self-healing, digital platforms, AI therapy, and comprehensive offline healing institutions [3][18] User Insights - A survey of 1,561 individuals who used emotional healing products/services revealed insights into user demographics, emotional healing awareness, consumption behavior, and future expectations [3][10] - The emotional healing market is characterized by a significant demand for psychological health services, with a low mental health literacy rate among the population, particularly among youth [10][41] Future Outlook - The emotional healing industry is expected to solidify its base among middle to high-income individuals, particularly targeting educated women for service penetration [4][69] - Technological advancements are driving the industry towards efficiency and service upgrades, reshaping the emotional healing ecosystem [4][72] - The industry is evolving through three stages: standardization, collaboration, and intelligence, which will drive comprehensive development for leading enterprises [4][76] Industry Ecosystem - The emotional healing industry has established a dual-loop ecosystem, integrating user needs, technological innovation, and policy support to create a complete industry cycle [18][20] - The industry comprises three core segments: self-healing and lifestyle enhancement, digital platforms and AI therapy, and offline healing institutions, all working in synergy to promote professional, intelligent, and scenario-based development [20][23] User Demographics - High-educated women are a key demographic, showing high satisfaction with emotional healing services but with a gap in professional service penetration [26][69] - Young male users, particularly in urban areas, face significant emotional challenges, indicating a need for market education to improve awareness and satisfaction [29][69] Emotional Challenges - Nearly 50% of users report experiencing anxiety and stress, with significant impacts on mental health, sleep quality, and overall well-being [35][38] - Emotional management satisfaction is low, with interpersonal relationships, personal traits, and long-term stress being primary triggers for emotional issues [38][41] Healing Methods - Users actively engage in emotional healing through immediate relief and long-term intervention strategies, with a focus on self-care and professional services [45][63] - The majority of users learn about emotional healing through online channels, indicating a shift towards digital platforms for mental health resources [48][51] Investment Trends - The emotional healing market is experiencing high investment activity, with leading companies securing multiple funding rounds, reflecting confidence in the mental health sector [23][69]

Investment Rating - The report maintains a "Buy" rating for Miniso (MNSO) with a 12-month target price of $23.40 for ADR and HK$46.00 for H-shares, reflecting a potential upside of 27.9% and 33.1% respectively [15][17]. Core Insights - Management reiterated its target for accelerated revenue growth in 2025, aiming for a year-on-year increase of 23% compared to 2024, with a focus on achieving low teens percentage growth in Miniso China sales and approximately 40% growth in overseas business [1][5]. - Despite expected slight declines in gross profit margins this year, management anticipates healthy operating profit growth for the year, with margins expected to narrow sequentially in Q2 and return to positive territory in Q3 [1][5]. - The company plans to close 300-400 underperforming or outdated stores in China, with expectations of stabilizing or slightly decreasing the number of new stores in the second quarter, but anticipates a return to store growth in the latter half of the year [1][11]. Summary by Sections Revenue Growth - Management expects revenue growth to accelerate in 2025, driven by positive sales and store productivity improvements, with a target of opening 500 to 600 new stores, of which 40% to 45% will be DTC stores [5][16]. - For Top Toy, management anticipates a year-on-year revenue growth of approximately 50% to 60% and plans to add 100 new stores [5]. Profit Margins - Operating profit is projected to recover to positive growth in Q3, with a target operating profit of RMB 3.6 billion to RMB 3.8 billion for the year, compared to RMB 3.2 billion last year [5][16]. - Management noted that while the operating profit margin may experience slight declines due to macroeconomic factors and DTC expansion, the pressure on margins is expected to gradually narrow [1][5][7]. Store Network and Strategy - The company is focusing on optimizing its store network, with plans to close underperforming stores while aiming for a net increase in store count in the latter half of the year [1][11]. - In the U.S. market, Miniso will concentrate on 24 states to achieve better economies of scale and reduce operational costs, while also optimizing its product mix to cater to local consumers [6][10]. Product Mix and Market Adaptation - The product mix includes a focus on toys and lifestyle products, with a strategy to increase local sourcing to mitigate potential tariff risks [10][12]. - Management aims to enhance the contribution of third-party products to diversify the product range while maintaining overall gross margin stability [12].