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MINISO Group Holding (MNSO)
NYSE:MNSO
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MINISO Group Holding
(NYSE:MNSO)
76Outperform
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
$5.91B
Dividend Yield1.41%
Average Volume (3M)1.37M
Price to Earnings (P/E)15.6
Beta (1Y)0.86
Revenue Growth10.01%
EPS Growth4.13%
CountryUS
Employees3,696
SectorConsumer Cyclical
Sector Strength51
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)1.17
Shares Outstanding312,467,960
10 Day Avg. Volume1,805,186
30 Day Avg. Volume1,367,843
Financial Highlights & Ratios
PEG Ratio3.76
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 Upside23.92% 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 presents a robust financial profile with strong profitability, a stable balance sheet, and solid cash flow generation. The company is well-positioned for sustainable growth, though attention to maintaining low leverage and continuing revenue growth is crucial.Income Statement
MINISO Group Holding demonstrates strong profitability with a solid gross profit margin and increasing revenue growth rate. The net profit margin has significantly improved over the years, reflecting effective cost management and operational efficiency, with EBIT and EBITDA margins showing consistent strength.85
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a strong equity position and low debt-to-equity ratio, indicating financial stability. The return on equity has been strengthening, showcasing an effective use of shareholders' equity. The equity ratio is robust, suggesting a solid capital structure.78
Positive
Cash Flow
MINISO shows strong cash flow generation with consistent growth in operating cash flow. The company maintains a healthy free cash flow to net income ratio, indicating efficient cash management. Positive free cash flow growth further supports its financial health and investment capabilities.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 12.28B | 11.47B | 11.47B | 10.09B | 9.07B | 8.98B | Gross Profit |
| 5.42B | 4.44B | 4.44B | 3.07B | 2.43B | 2.73B | EBIT |
| 2.35B | 2.12B | 2.22B | 882.03M | 444.38M | 112.41M | EBITDA |
| 2.52B | 2.16B | 2.37B | 1.27B | -1.18B | 381.08M | Net Income Common Stockholders |
| 1.81B | 1.77B | 1.77B | 638.17M | -1.43B | -130.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.26B | 6.88B | 7.28B | 5.80B | 6.87B | 2.85B | Total Assets |
| 14.91B | 14.49B | 13.45B | 11.28B | 10.71B | 5.84B | Total Debt |
| 1.31B | 805.25M | 892.95M | 658.01M | 825.01M | 1.02B | Net Debt |
| -5.43B | -5.61B | -5.60B | -4.69B | -5.95B | -1.83B | Total Liabilities |
| 5.81B | 5.29B | 4.53B | 4.25B | 4.05B | 6.16B | Stockholders Equity |
| 9.07B | 9.17B | 8.90B | 7.03B | 6.66B | -336.63M |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | 1.67B | 1.49B | 1.12B | 736.04M | 769.51M | Operating Cash Flow |
| 0.00 | 2.20B | 1.67B | 1.41B | 916.32M | 826.48M | Investing Cash Flow |
| 0.00 | 354.15M | -293.41M | -2.13B | -518.80M | 462.81M | Financing Cash Flow |
| 0.00 | -2.64B | -325.96M | -733.56M | 3.54B | -117.71M |
MINISO Group Holding Technical Analysis
Negative
18.77
Price Trends
21.49
Negative
21.62
Negative
19.41
Positive
Market Momentum
-0.65
Positive
45.49
Neutral
28.65
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 18.77 is below the 20-day moving average (MA) of 20.01, below the 50-day MA of 21.49, and below the 200-day MA of 19.41, indicating a neutral trend. The MACD of -0.65 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 28.65 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.91B | 15.55 | 26.89% | 1.41% | 10.01% | 4.13% | |
73 Outperform | $679.51B | 35.24 | 22.23% | 0.97% | 5.07% | 25.86% | |
71 Outperform | $416.51B | 54.28 | 32.89% | 0.50% | 6.13% | 12.14% | |
65 Neutral | $19.25B | 16.56 | 15.89% | 2.79% | 4.96% | -32.41% | |
59 Neutral | $12.60B | 11.17 | 0.97% | 3.72% | 1.34% | -21.34% | |
54 Neutral | $14.88B | ― | 18.88% | ― | 5.19% | -190.36% | |
54 Neutral | $48.02B | 11.90 | 29.12% | 4.20% | -0.79% | -0.90% |
* Consumer Cyclical Sector Average
Performance Comparison
MNSO
MINISO Group Holding
19.52
-0.64
-3.17%
COST
Costco
938.75
210.11
28.84%
DG
Dollar General
87.54
-64.96
-42.60%
DLTR
Dollar Tree
76.95
-56.20
-42.21%
TGT
Target
106.51
-65.40
-38.04%
WMT
Walmart
85.63
26.13
43.92%
MINISO Group Holding Earnings Call Summary
Earnings Call Date: Mar 21, 2025 | % Change Since: -9.72% | 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.