Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 4.427 billion yuan in Q1 2025, representing a year-on-year increase of 18.89%, slightly above the company's guidance. However, the net profit attributable to the parent company was 416 million yuan, down 28.9% year-on-year, primarily due to increased short-term financing costs related to the acquisition of Yonghui Superstores [7] - The company's gross margin for Q1 2025 was 44.23%, up 0.82 percentage points year-on-year, while the adjusted net profit margin was 13.26%, down 3.3 percentage points year-on-year. This was mainly due to the higher revenue share from overseas direct sales, which typically has lower profit margins during the off-season [7] - Domestic MINISO revenue reached 2.49 billion yuan in Q1 2025, up 9.15% year-on-year, with a net reduction of 111 stores to 4,275 stores as the company focused on optimizing store structure and upgrading the brand [7] - Overseas revenue for MINISO was 1.592 billion yuan in Q1 2025, a year-on-year increase of 30.3%, with a net addition of 95 stores, bringing the total to 3,213 stores [7] - The TOP TOY brand achieved revenue of 340 million yuan in Q1 2025, up 58.9% year-on-year, with a net increase of 4 stores to 280 stores [7] - The company expects continued growth in both domestic and overseas markets, with adjustments made to profit forecasts for 2025-2027 [7] Financial Summary - Total revenue forecast for 2023A is 13.838 billion yuan, with a year-on-year growth of 39.42%. For 2024A, the forecast is 16.994 billion yuan, representing a 22.80% increase, and for 2025E, it is 20.664 billion yuan, a 21.59% increase [1] - The net profit attributable to the parent company for 2023A is forecasted at 2.253 billion yuan, with a year-on-year growth of 111.48%. For 2024A, it is 2.618 billion yuan, a 16.17% increase, and for 2025E, it is 2.544 billion yuan, a decrease of 2.81% [1] - The Non-IFRS net profit for 2023A is projected at 2.357 billion yuan, with a year-on-year growth of 109.65%. For 2024A, it is 2.721 billion yuan, a 15.44% increase, and for 2025E, it is 2.919 billion yuan, a 7.30% increase [1] - The latest diluted EPS for 2023A is 1.79 yuan per share, with a forecast of 2.09 yuan for 2024A and 2.04 yuan for 2025E [1] - The P/E ratio for the current price and latest diluted EPS is 18.51 for 2023A, 15.81 for 2024A, and 16.27 for 2025E [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company has deepened its IP strategy and accelerated globalization, achieving a record high gross margin [1] - In 2024, the company achieved revenue of 16.99 billion yuan, a year-on-year increase of 22.8%, with adjusted net profit of 2.72 billion yuan, up 15.4% [5] - The company expects to maintain strong performance in the second half of 2025, driven by its IP strategy and expansion of overseas direct stores [5] Financial Summary - Revenue projections for 2025, 2026, and 2027 are 20.95 billion yuan, 25.51 billion yuan, and 30.97 billion yuan respectively, with year-on-year growth rates of 23.3%, 21.7%, and 21.4% [5] - Net profit projections for the same years are 3.05 billion yuan, 3.72 billion yuan, and 4.57 billion yuan, with year-on-year growth rates of 16.5%, 22.1%, and 22.7% [5] - The gross margin is expected to improve from 44.9% in 2024 to 50.6% in 2027 [5] Market Performance - The company has optimized its store layout and enhanced IP penetration in China, with revenue from the mainland reaching 9.33 billion yuan, a 10.9% increase [5] - The overseas revenue reached 6.68 billion yuan, a 41.9% increase, with a significant increase in the number of direct stores [5] - The company is focusing on enhancing its online sales and expanding its product categories to drive growth [5]