Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector. 

Equity Research experience of over 20 years. Earlier, Analyst for leading Buy and Sell-side institutions, covering markets in ASEAN, India, and North Asia. Expertise spans various sectors - Consumer Discretionary, Media, Textiles, Oil, Gas, and Coal.
Passionate about mindfulness and meditation.

Investment Research - Asia Consumer Sector

MINISO (名创优品) IPO Trading - Not Much Value Left After Pricing Above Range

Miniso (MNSO US): Cute and Cheap Is Not a Competitive Edge. Not for LT Keep.

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/miniso-group-holdings" target="_blank" data-smartkarma-citation="entities:29673:1" rel="noopener">MINISO Group Holdings (MNSO US)</a>, a Guangzhou, China, head-quartered offline-based branded variety discount retail chain that refers to itself as a Japanese-inspired lifestyle product retailer will trade in the US and proposes to raise up to USD562 mn via its IPO, listing on October 15th. With its strategy of frequent rollout of varied designs of low-value discretionary consumer products, Miniso's products have an appeal similar to fast fashion - frequently bought, mostly on impulse, and easily discarded - sans the brand power. This, along with its extensive store expansion, has underpinned the company's aggressive (pre-pandemic) growth. In the detailed note below, we discuss why Miniso's aggressive (pre-pandemic) growth rate may not be sustainable and how its business model, like its products, lacks a competitive edge and longevity. We also highlight how Miniso's operating model could be weakened if the shift in consumer shopping behavior and preferences, triggered during the pandemic, stays on.

MINISO Group Holdings (MNSO US), a Guangzhou, China, head-quartered offline-based branded variety discount retail chain that refers to itself as a Japanese-inspired lifestyle product retailer will trade in the US and proposes to raise up to USD562 mn via its IPO, listing on October 15th. With its strategy of frequent rollout of varied designs of low-value discretionary consumer products, Miniso's products have an appeal similar to fast fashion - frequently bought, mostly on impulse, and easily discarded - sans the brand power. This, along with its extensive store expansion, has underpinned the company's aggressive (pre-pandemic) growth. In the detailed note below, we discuss why Miniso's aggressive (pre-pandemic) growth rate may not be sustainable and how its business model, like its products, lacks a competitive edge and longevity. We also highlight how Miniso's operating model could be weakened if the shift in consumer shopping behavior and preferences, triggered during the pandemic, stays on.

Miniso (MNSO US): Impulse Shopper's Paradise. Not a Sustainable Growth Model.