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MINISO Group Holding (MNSO)
NYSE:MNSO
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MINISO Group Holding
(NYSE:MNSO)
74Outperform
Positive Factors
Digital Growth
China online sales grew by 31%, showcasing a significant acceleration in digital growth.
Overseas Expansion
Overseas revenue showed strong growth of 40%, with significant contributions from both direct-to-consumer and distributor markets.
Revenue and Earnings Outlook
The company maintains its medium-term targets, including a 20%+ revenue CAGR and faster EPS growth, signaling confidence in its future performance.
Negative Factors
Domestic Market Challenges
Sales per store in China declined by 8% year-over-year, indicating challenges in the domestic market amid a high base and overall consumption softness.
Macroeconomic Concerns
Concerns about impact from US tariffs and macroeconomic slowdown.
Yonghui Transaction Concerns
The Yonghui transaction raises more questions than answers, increasing the company’s risk profile and adversely impacting investors’ perception of the company.
MINISO Group Holding (MNSO) vs. S&P 500 (SPY)
Market Cap
$5.71B
Dividend Yield1.46%
Average Volume (3M)1.42M
Price to Earnings (P/E)15.4
Beta (1Y)0.88
Revenue Growth10.01%
EPS Growth4.13%
CountryUS
Employees7,003
SectorConsumer Cyclical
Sector Strength46
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.17
Shares Outstanding312,834,350
10 Day Avg. Volume1,721,985
30 Day Avg. Volume1,424,275
Financial Highlights & Ratios
PEG Ratio3.73
Price to Book (P/B)N/A
Price to Sales (P/S)3.79
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.26Price Target Upside28.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
MINISO Group Holding Business Overview & Revenue Model
Company DescriptionMINISO Group Holding (MNSO) is a global retailer that specializes in lifestyle and household products. Founded in 2013 and headquartered in China, MINISO offers a wide range of products, including home goods, electronics, cosmetics, toys, and stationery. The company is known for its affordable, high-quality, and design-focused merchandise, appealing to a broad consumer base across various international markets.
How the Company Makes MoneyMINISO Group Holding makes money primarily through the sale of its diverse range of products across its global network of retail stores. The company operates on a franchise model, which allows it to expand rapidly and efficiently into various international markets. Revenue streams include direct sales from company-operated stores, franchise fees, and royalties from franchisees. Additionally, MINISO benefits from strategic partnerships and collaborations with popular brands and designers, which enhance its product offerings and attract more customers. The company's effective supply chain management and cost-control strategies also contribute significantly to its profitability by ensuring competitive pricing and maintaining healthy margins.
MINISO Group Holding Financial Statement Overview
Summary
MINISO Group Holding demonstrates strong financial health with impressive revenue and profit growth. The income statement shows solid revenue growth and improved margins, the balance sheet reflects financial stability with low debt, and the cash flow statement indicates stable cash generation with room for improved efficiency.Income Statement
MINISO Group Holding has demonstrated solid growth in its income statement. The revenue growth rate from 2023 to 2024 was impressive, illustrating a strong upward trajectory. The gross profit margin and net profit margin have shown considerable improvement, indicating enhanced profitability. The EBIT and EBITDA margins are robust, reflecting effective cost management and operational efficiency. Overall, the company's income statement reveals strong growth and profitability, positioning it favorably in the specialty retail sector.83
Very Positive
Balance Sheet
The balance sheet of MINISO Group Holding reflects financial stability with a solid equity base and a manageable level of debt. The debt-to-equity ratio is low, suggesting conservative leverage. The return on equity has significantly improved, showcasing the company's ability to generate returns from shareholders' investments. The equity ratio indicates a healthy proportion of equity financing. While there is a strong equity position, the company should remain vigilant in managing liabilities to sustain this positive trend.79
Positive
Cash Flow
The cash flow analysis of MINISO Group Holding highlights a stable cash generation capability. The operating cash flow to net income ratio is favorable, indicating efficient conversion of earnings into cash. The free cash flow growth rate is positive, supporting future investments and debt servicing. However, the free cash flow to net income ratio suggests room for improvement in cash flow management. Overall, the cash flow statement reflects a solid cash position, with opportunities to enhance cash flow efficiency.76
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 16.99B | 11.47B | 11.47B | 10.09B | 9.07B | Gross Profit |
| 7.64B | 4.44B | 4.44B | 3.07B | 2.43B | EBIT |
| 3.32B | 2.12B | 2.22B | 882.03M | 401.04M | EBITDA |
| 3.23B | 2.16B | 2.16B | 870.01M | 481.17M | Net Income Common Stockholders |
| 2.62B | 1.77B | 1.77B | 638.17M | -1.42B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.70B | 6.88B | 7.28B | 5.80B | 6.87B | Total Assets |
| 18.12B | 14.49B | 13.45B | 11.28B | 10.71B | Total Debt |
| 3.11B | 805.25M | 892.95M | 658.01M | 825.01M | Net Debt |
| -3.22B | -5.61B | -5.60B | -4.69B | -5.95B | Total Liabilities |
| 7.76B | 5.29B | 4.53B | 4.25B | 4.05B | Stockholders Equity |
| 10.31B | 9.17B | 8.90B | 7.03B | 6.66B |
| Cash Flow | Free Cash Flow | |||
| 1.41B | 1.67B | 1.49B | 1.12B | 736.04M | Operating Cash Flow |
| 2.17B | 2.20B | 1.67B | 1.41B | 916.32M | Investing Cash Flow |
| -533.25M | 354.15M | -293.41M | -2.13B | -518.80M | Financing Cash Flow |
| -1.72B | -2.64B | -325.96M | -733.56M | 3.54B |
MINISO Group Holding Technical Analysis
Negative
18.07
Price Trends
20.93
Negative
21.56
Negative
19.33
Negative
Market Momentum
-0.68
Positive
45.00
Neutral
27.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNSO, the sentiment is Negative. The current price of 18.07 is below the 20-day moving average (MA) of 19.51, below the 50-day MA of 20.93, and below the 200-day MA of 19.33, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 27.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MNSO.
MINISO Group Holding Risk Analysis
MINISO Group Holding disclosed 103 risk factors in its most recent earnings report. MINISO Group Holding reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MINISO Group Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.71B | 15.41 | 26.89% | 1.46% | 10.01% | 4.13% | |
73 Outperform | $699.55B | 36.28 | 22.23% | 0.98% | 5.07% | 25.86% | |
71 Outperform | $429.08B | 56.46 | 32.89% | 0.48% | 6.13% | 12.14% | |
65 Neutral | $19.27B | 17.13 | 15.89% | 2.50% | 4.96% | -32.41% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
57 Neutral | $14.46B | ― | 18.88% | ― | -9.88% | -205.57% | |
54 Neutral | $42.95B | 10.64 | 29.12% | 4.73% | -0.79% | -0.90% |
* Consumer Cyclical Sector Average
Performance Comparison
MNSO
MINISO Group Holding
16.86
-3.83
-18.51%
COST
Costco
916.48
206.65
29.11%
DG
Dollar General
92.62
-63.29
-40.59%
DLTR
Dollar Tree
67.55
-63.16
-48.32%
TGT
Target
95.72
-70.92
-42.56%
WMT
Walmart
83.19
24.01
40.57%
MINISO Group Holding Earnings Call Summary
Earnings Call Date: Mar 21, 2025 | % Change Since: -13.08% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant global expansion, strong overseas market performance, and improved profitability metrics. However, challenges such as same-store sales pressure, high operating expenses, and inventory turnover issues were noted. Despite these challenges, the company's strategic initiatives and growth drivers suggest a positive outlook.Highlights
Significant Store Expansion
By the end of December 2024, MINISO's global store count reached 7,780, with a net increase of 1,219 stores for the year, including 460 new stores in China and 631 overseas.
Strong Overseas Revenue Growth
Overseas revenue reached RMB 6.68 billion, representing a 42% growth. The U.S. market showed triple-digit compound growth from 2021 to 2024.
Improved Gross Margin
The gross margin improved by 3.7 percentage points in 2024, reaching 44.9%, driven by revenue structure adjustments and effective IP strategies.
TOP TOY Profitability
TOP TOY achieved 45% revenue growth and became profitable for the first full year, with a 7.3% improvement in gross margin.
ESG Rating Upgrade
MINISO achieved an ESG rating upgrade for three consecutive years, with an MSCI rating of AA.
Lowlights
Same-Store Sales Pressure
Same-store sales faced pressure in 2024, with a low single-digit decline compared to the previous year.
High Operating Expenses
Sales and administrative expenses increased by 52%, mainly due to newly opened directly operated stores, especially in overseas markets.
Challenges in Directly Operated Stores
Directly operated stores have the lowest gross margin among store formats, though they have significant optimization potential in the long term.
Inventory Turnover Challenges
Overseas inventory turnover days increased significantly, with directly operated markets recording 187 days, up from 131 days the previous year.
Company Guidance
During the MINISO Full Year 2024 Earnings Call, several key metrics and strategic insights were shared. The company reported a significant revenue growth of 23%, reaching approximately RMB17 billion. The total store count increased to 7,780, with a net addition of 1,219 stores in 2024. MINISO China added 460 stores, while MINISO Overseas expanded by 631 stores, contributing nearly 40% of the group's revenue. The overseas revenue grew by 42% to RMB6.68 billion, and the gross merchandise volume (GMV) reached RMB14.16 billion, reflecting a 27% increase. TOP TOY reported a 45% growth with 128 new stores, achieving full-year profitability for the first time. The company also highlighted a substantial increase in global registered membership, surpassing 100 million members, who accounted for more than 60% of the total sales. Additionally, MINISO outlined its focus on enhancing store quality and channel structure, improving member loyalty, and expanding its global supply chain to reduce dependency on Mainland China. The call set a positive outlook for 2025, emphasizing sustained growth through strategic store expansions and operational optimizations, with a goal to double the store count by 2028.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.