MINISO Group Holding (MNSO) AI Stock Analysis

• Market Cap: $7.37B
• Dividend Yield: 2.51%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.67
• Revenue Growth: 10.93%
• EPS Growth: -10.83%
• Country: US
• Employees: 7,003
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Specialty Retail
• EPS (TTM): 0.22
• Shares Outstanding: 310,659,200
• 10 Day Avg. Volume: 2,210,411
• 30 Day Avg. Volume: 1,145,344
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 0.75
• Enterprise Value/Ebitda: 1.95
• 1Y Price Target: $26.94
• Price Target Upside: 9.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: $30.00 ▲(22.35% Upside)

MINISO Group Holding's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. Technical indicators suggest strong momentum, though caution is warranted due to overbought conditions. Valuation is reasonable but not compelling, limiting upside potential.

Positive Factors

Financial Performance

MINISO's 2Q results showed significant improvement with revenue and net profit attributable to shareholders increasing by 23% and 11% respectively, indicating strong financial performance.

Growth Strategy

The expansion of TopToy stores resulted in an 87% revenue surge, demonstrating effective growth strategies.

International Expansion

Overseas revenue increased by 29% year-over-year, highlighting successful international expansion.

Negative Factors

Financial Challenges

Higher net finance expense related to CB and rising debt further weighed on the financial performance.

Market Valuation

Despite strong performance, the stock has already risen by 13%, suggesting limited short-term upside potential.

Profitability Concerns

Expect DTC to depress near-term profitability.

MINISO Group Holding Business Overview & Revenue Model

Company Description

MINISO Group Holding Limited, an investment holding company, engages in the retail and wholesale of lifestyle products in China, Asia, the Americas, and Europe. The company offers products in various categories, including home decor products, small electronics, textiles, accessories, beauty tools, toys, cosmetics, personal care products, snacks, fragrances and perfumes, and stationeries and gifts under the MINISO and WonderLife brand names; and blind boxes, toy bricks, model figures, model kits, collectible dolls, Ichiban Kuji, sculptures, and other popular toys under the TOP TOY brand. As of June 30, 2021, it operated a network of approximately 4,749 MINISO stores, as well as online sales channels. The company was founded in 2013 and is based in Guangzhou, China.

How the Company Makes Money

MINISO makes money through its extensive network of retail stores and online platforms across various countries. The company's revenue model is based on direct sales of its diverse product portfolio, which includes private-label goods and exclusive licensed products. Key revenue streams include physical store sales, which are bolstered by strategic locations in high-traffic areas, and e-commerce sales, driven by a robust online presence. Significant partnerships with popular brands and designers also contribute to its earnings by attracting a wide customer base. Furthermore, MINISO leverages economies of scale in its supply chain to offer competitive pricing, enhancing its market appeal and profitability.

MINISO Group Holding Financial Statement Overview

Summary

MINISO Group Holding exhibits strong financial health with impressive revenue and profit growth, a solid equity base, and manageable debt levels. The income statement shows robust growth and profitability, while the balance sheet reflects financial stability. Cash flow is stable but has room for efficiency improvements.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.70B	16.99B	11.47B	11.47B	10.09B	9.07B
Gross Profit	7.98B	7.64B	4.44B	4.44B	3.07B	2.43B
EBITDA	3.07B	3.23B	2.16B	2.16B	870.01M	481.17M
Net Income	2.45B	2.62B	1.77B	1.77B	638.17M	-1.42B
Balance Sheet
Total Assets	26.19B	18.12B	14.49B	13.45B	11.28B	10.71B
Cash, Cash Equivalents and Short-Term Investments	7.25B	6.70B	6.88B	7.28B	5.80B	6.87B
Total Debt	9.21B	3.11B	805.25M	892.95M	658.01M	825.01M
Total Liabilities	15.51B	7.76B	5.29B	4.53B	4.25B	4.05B
Stockholders Equity	10.63B	10.31B	9.17B	8.90B	7.03B	6.66B
Cash Flow
Free Cash Flow	0.00	1.41B	1.67B	1.49B	1.12B	736.04M
Operating Cash Flow	0.00	2.17B	2.20B	1.67B	1.41B	916.32M
Investing Cash Flow	0.00	-533.25M	354.15M	-293.41M	-2.13B	-518.80M
Financing Cash Flow	0.00	-1.72B	-2.64B	-325.96M	-733.56M	3.54B

MINISO Group Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNSO, the sentiment is Positive. The current price of 24.52 is above the 20-day moving average (MA) of 22.49, above the 50-day MA of 19.96, and above the 200-day MA of 19.87, indicating a bullish trend. The MACD of 1.48 indicates Negative momentum. The RSI at 64.99 is Neutral, neither overbought nor oversold. The STOCH value of 28.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MNSO.

MINISO Group Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIPS	79 Outperform	$8.37B	9.21	17.79%	2.80%	-5.24%	-12.89%
FIVE	77 Outperform	$8.43B	30.91	15.54%	―	13.88%	-2.64%
MNSO	77 Outperform	$7.37B	23.52	22.92%	2.51%	10.93%	-10.83%
BBWI	63 Neutral	$6.57B	9.48	-52.83%	2.72%	-0.18%	-18.95%
Sector *	61 Neutral	$17.97B	12.87	-5.30%	2.97%	1.26%	-14.45%
W	57 Neutral	$10.74B	―	17.86%	―	0.87%	54.67%
ETSY	57 Neutral	$5.17B	43.23	-39.97%	―	2.38%	-38.88%