Core Viewpoint - The article discusses the contrasting performance of Pop Mart and Miniso in the new consumption sector, highlighting Pop Mart's strong growth driven by its IP strategy, while Miniso faces challenges in its business model transformation [2][12][25]. Group 1: Pop Mart's Performance - Since August, Pop Mart's stock price has increased by 37%, with a market capitalization exceeding 400 billion yuan [3]. - Pop Mart's recent mini LABUBU release sold 300,000 units in just one minute, showcasing its strong consumer demand [4]. - In the first half of 2025, Pop Mart achieved revenue of 13.876 billion yuan, 1.5 times that of Miniso, with a year-on-year growth of 204.4% [27]. Group 2: Miniso's Challenges - Miniso's stock has experienced significant volatility, with a 20% drop following its 2024 annual performance release and a subsequent rise of over 20% after its 2025 first-half results [7][8]. - For the first half of 2025, Miniso reported revenue of 9.393 billion yuan, a year-on-year increase of 21.1%, but its net profit decreased by nearly 20% [14]. - Miniso's market capitalization is still below 60 billion HKD, with a valuation of only 22 times earnings, indicating a lack of investor enthusiasm [10]. Group 3: IP Strategy Comparison - The disparity between Pop Mart and Miniso largely stems from their approaches to IP. Pop Mart has successfully integrated IP into its business model, while Miniso struggles to replicate this success [12][40]. - In the first half of 2025, Pop Mart's gross margin was 70.3%, significantly higher than Miniso's 44.3% [28]. - Pop Mart's revenue from self-developed products accounted for 99.1%, with 88.1% coming from artist IP, indicating a strong reliance on proprietary IP for revenue generation [29]. Group 4: Miniso's Growth Strategy - Miniso has expanded its overseas presence significantly, opening 554 new stores in international markets, nearly three times the number of new stores opened in mainland China [16][18]. - Despite the rapid expansion, Miniso faces high operational costs in overseas markets, leading to low same-store sales growth rates [20][21]. - The company is exploring ways to leverage IP to enhance its store offerings and drive growth, but it remains to be seen if it can effectively transform its business model [25][54]. Group 5: Future Outlook - The article suggests that Miniso's future growth may depend on its ability to develop and leverage its own IP, which could enhance its product offerings and market position [54][60]. - As the global market for Chinese cultural products expands, there is potential for significant growth in the IP economy, which could benefit companies like Miniso if they adapt successfully [60].

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]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [3][7]. Core Insights - The company reported Q1 2025 revenue of RMB 4.43 billion, a year-on-year increase of 18.9%, but net profit decreased by 28.5% year-on-year [7]. - Same-store sales in China showed improvement, with expectations for positive growth in Q2 2025 [8]. - The company is focusing on optimizing store operations and expanding high-efficiency stores to drive revenue growth [8]. Summary by Sections Company Overview - The company operates in the retail sector, with a current H-share price of HKD 34.55 and a market capitalization of RMB 36.35 billion [2]. - Major shareholder is Yang Yun Yun, holding 63.17% of shares [2]. Recent Performance - Q1 2025 revenue from the Miniso brand was RMB 4.09 billion, a 16.5% year-on-year increase, while overseas revenue grew by 30.3% [8]. - TOPTOY's revenue reached RMB 340 million, a 59% increase year-on-year, with a total of 280 stores [8]. Financial Projections - The company expects net profits of RMB 2.49 billion, RMB 3.03 billion, and RMB 3.60 billion for 2025, 2026, and 2027 respectively, with corresponding EPS of RMB 1.99, RMB 2.42, and RMB 2.88 [10]. - The report anticipates a decrease in profit margins due to increased operational costs and investments in new stores [8]. Valuation Metrics - The current price-to-earnings (P/E) ratios are projected at 16x for 2025, 13x for 2026, and 11x for 2027 [10]. - The report highlights that the stock is currently undervalued following a significant price drop, presenting a favorable investment opportunity [8].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [3][7]. Core Insights - The company reported Q1 2025 revenue of RMB 4.43 billion, a year-on-year increase of 18.9%, while net profit attributable to shareholders was RMB 420 million, a decline of 28.5% [7]. - Same-store sales in China showed improvement, with expectations for positive growth in Q2 2025 [8]. - The company is focusing on optimizing store operations and expanding high-efficiency new stores to drive revenue growth [8]. Summary by Sections Company Overview - The company operates in the retail trade sector, with a current H-share price of HKD 34.55 and a market capitalization of RMB 36.35 billion [2]. Recent Performance - The company’s revenue growth outpaced previous guidance, but profit growth fell short of expectations [7]. - The gross margin improved by 0.8 percentage points to 44.2%, driven by overseas revenue contributions and product mix optimization [8]. Financial Projections - The company expects net profits of RMB 2.49 billion, RMB 3.03 billion, and RMB 3.60 billion for 2025, 2026, and 2027 respectively, with corresponding EPS of RMB 1.99, RMB 2.42, and RMB 2.88 [10]. - The report anticipates a decline in net profit for 2025, followed by growth in subsequent years [10]. Market Position - The company maintains a strong market position with a significant share of its revenue coming from the Miniso brand, which accounted for 92.3% of total revenue [3]. - The expansion of TOPTOY contributed to revenue growth, with a 59% year-on-year increase in Q1 2025 [8]. Valuation Metrics - The current price-to-earnings (P/E) ratios for the forecasted years are 16x for 2025, 13x for 2026, and 11x for 2027, indicating a potentially attractive valuation [10].

Investment Rating - The report maintains an "OUTPERFORM" rating for the company with a target price of USD 22.50, reflecting a potential upside from the current price of USD 18.29 [2][10]. Core Insights - The company reported a revenue of RMB 4.43 billion in 1Q, representing a 19% year-over-year increase, while adjusted net profit decreased by 5% to RMB 587 million [3][16]. - Domestic revenue was RMB 2.49 billion, up 9% year-over-year, with a net closure of 111 domestic stores [3][16]. - Overseas revenue reached RMB 1.59 billion, a 30% increase year-over-year, with a net addition of 95 overseas stores [5][16]. - The gross profit margin (GPM) improved to 44.2%, up 0.8 percentage points year-over-year, while the adjusted net profit margin (NPM) was 13.3%, down 3.3 percentage points [8][16]. Financial Projections - Revenue projections for 2025-2027 are RMB 20.9 billion, RMB 24.9 billion, and RMB 29.2 billion, respectively, with adjusted net profits expected to be RMB 2.76 billion, RMB 3.66 billion, and RMB 4.57 billion [10][17]. - The company anticipates a net store opening of 200-300 in China and 500-600 overseas in 2025 [4][5]. Cost Structure and Profitability - The sales expense ratio increased to 23.1%, up 4.4 percentage points year-over-year, primarily due to expenses related to direct stores [8][16]. - The adjusted net profit margin is projected to improve gradually, with expectations of 13.2%, 14.7%, and 15.6% for 2025-2027 [10][14]. Market Position and Strategy - The company is focusing on high-quality development and channel upgrades in the domestic market, with a strategy of opening larger stores while closing smaller ones [4][9]. - In the overseas market, the company aims to enhance efficiency and reduce costs, particularly in the U.S. market, while replicating successful domestic strategies [5][9].

Investment Rating - The report assigns a "BUY" rating for the company, indicating a potential upside in the stock price [8]. Core Insights - The company achieved a total revenue of RMB 17 billion for the year, representing a year-on-year increase of 22.8%, with a net profit of RMB 2.64 billion, up 15.9% year-on-year [9]. - The company is focusing on optimizing store operations and matching consumer profiles with products to enhance store efficiency and sales [10]. - The company is accelerating its globalization efforts, with overseas revenue reaching RMB 6.67 billion, a 42% increase year-on-year, and a total of 3,118 stores globally, up 25.4% [10]. - The gross profit margin improved by 3.7 percentage points to 44.9%, benefiting from product structure optimization and increased direct market share overseas [10]. - The company plans to maintain its investment in IP and improve same-store sales through structural upgrades and enhancing member repurchase rates [10]. Summary by Sections Financial Performance - The company reported a net profit of RMB 2.64 billion for 2024, with projections of RMB 3.1 billion, RMB 3.72 billion, and RMB 4.48 billion for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 19%, 20%, and 20% [12]. - The earnings per share (EPS) are projected to be RMB 2.48, RMB 2.97, and RMB 3.58 for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (P/E) ratios of 11, 9, and 8 [12]. Revenue Breakdown - Domestic revenue for 2024 was RMB 10.31 billion, a 13.4% increase, while overseas revenue was RMB 6.67 billion, a 42% increase [10]. - The company’s product mix is heavily weighted towards its flagship brand, MINISO, which accounts for 94.2% of total revenue, while TOPTOY contributes 5.8% [4]. Market Position - The company is focusing on the U.S. and U.K. markets as key growth areas, with significant store openings and sales growth in these regions [10]. - The company’s strategy includes enhancing operational efficiency and reducing costs through acquisitions, such as the 29.4% stake in Yonghui Supermarket [10].

Investment Rating - The report assigns a "BUY" rating for the company, indicating a potential upside in the stock price [8]. Core Insights - The company achieved a total revenue of RMB 17 billion for the year, representing a year-on-year increase of 22.8%, with a net profit of RMB 2.64 billion, up 15.9% year-on-year [9]. - The company is focusing on optimizing store operations and enhancing customer engagement to improve same-store sales, particularly in the domestic market, while continuing to expand its global footprint [10]. - The gross profit margin improved by 3.7 percentage points to 44.9%, benefiting from an optimized product mix and increased direct market share overseas [10]. Summary by Sections Company Overview - The company operates in the retail trade sector, with a current H-share price of HKD 29.05 and a market capitalization of RMB 36.35 billion [2]. Financial Performance - The company reported a net profit of RMB 2.64 billion for 2024, with an expected increase to RMB 3.1 billion in 2025, reflecting a growth rate of 19% [12]. - The earnings per share (EPS) is projected to be RMB 2.48 in 2025, with a price-to-earnings (P/E) ratio of 11 times [12]. Product Portfolio - The company's product mix is heavily weighted towards MINISO, which accounts for 94.2% of its revenue, while TOPTOY contributes 5.8% [4]. Market Expansion - The company is accelerating its global expansion, with overseas revenue reaching RMB 6.67 billion in 2024, a 42% increase year-on-year [10]. - The total number of stores reached 3,118, marking a 25.4% increase from the previous year, with significant growth in the U.S. and U.K. markets [10]. Dividend Policy - The company announced a dividend of USD 0.0817 per share [9].