Miniso (MNSO) Earnings Report: Record High Gross Margin at 43.1% with 2Q Revenue of 3.84B Yuan

Miniso on Smartkarma

Independent investment research network Smartkarma has recently seen a surge in analyst coverage of Miniso Group (MNSO US), a Chinese retail company known for its affordable household and consumer goods. According to analyst Eric Wen, Miniso‘s domestic store sales have shown a 35% year-on-year increase during the 2024 Chinese New Year holiday, with overall revenue expected to rise by 26% in the first quarter of 2024. Wen maintains a BUY rating on the stock with a target price of US$33 per American Depositary Share (ADS).

In another report, Wen highlights Miniso‘s Investor Day, where management outlined their strategy for growth through connections with the Chinese supply chain. This is expected to result in higher revenue and non-GAAP net income for the company. Wen maintains a bullish stance on the stock and raises his target price to US$33 per ADS.

During a recent conference call, Miniso‘s management reassured investors and refuted claims made by a short seller, leading analysts to recommend buying the stock. Wen also notes that the company’s business model remains solid. He reiterates his BUY rating and target price of US$31 per ADS.

However, Wen also highlights concerns about Miniso‘s overseas distributor slowdowns and inventory issues, which have been exacerbated by US interest rates. He maintains a BUY rating but lowers his target price to US$31 per ADS.

Meanwhile, analyst Shawn Yang notes that Miniso‘s expansion into North America has shown promising results, leading to an increase in top line and operating profit estimates for 2024 and 2025. Yang maintains a BUY rating and raises his target price to US$30.5 per ADS. Overall, the analyst coverage on Smartkarma suggests a positive outlook for Miniso‘s future growth prospects.

A look at Miniso Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

The future looks bright for Miniso, the popular value retailer known for its aesthetically pleasing and affordable products. According to Smartkarma’s Smart Scores, the company has received high marks in key areas such as growth, resilience, and dividends. This indicates a positive long-term outlook for the company, as it continues to expand its presence globally and attract customers with its unique offerings.

With a score of 5 for both growth and resilience, Miniso is well-positioned to continue its upward trajectory in the retail market. The company’s commitment to providing good-quality products at affordable prices has resonated with consumers, resulting in strong momentum and a score of 2 in that category. This, coupled with a solid score of 4 for dividends, makes Miniso a promising investment for those looking for long-term returns. Overall, Smartkarma’s Smart Scores paint a promising picture for the future of Miniso Group Holding.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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