MINISO Group (NYSE:MNSO) Releases Quarterly Earnings Results, Misses Expectations By $0.06 EPS

MINISO Group (NYSE:MNSO) released its quarterly earnings data on Friday. The company reported $0.25 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.06), Zacks reports. MINISO Group had a net margin of 9.03% and a return on equity of 18.98%.

Here are the key takeaways from MINISO Group’s conference call:

• Strong H1 growth was led by China: Revenue rose 22.4% to RMB 11.5 billion, with MINISO China revenue up 26.2% and operating cash flow increasing 46%. China’s larger-store formats, renovations, proprietary IP and membership program all contributed to higher per-store productivity.
• Proprietary IP is emerging as a growth engine. YOYO generated nearly RMB 500 million of H1 revenue, while group proprietary-IP sales surpassed the RMB 1 billion target ahead of schedule; new IP Chou Chou also reportedly sold out rapidly. TOP TOY revenue increased 32.7%, with its NOMI IP exceeding RMB 300 million in cumulative GMV.
• Overseas execution weighed on profitability. Distributor revenue declined, directly operated markets outside North America remained in the investment stage, and overseas inventory turnover worsened to 273 days from 240 days. Management plans to close 100–110 distributor stores and reduce total overseas store count by 50–70 in H2.
• Full-year profit guidance was downgraded. Excluding foreign-exchange effects, adjusted operating profit is now expected to decline by high single digits, with operating margin down 3–4 percentage points year over year versus the prior expectation of a 1–2 point decline. Management expects H2 revenue growth to slow to high single digits, primarily because of weaker overseas distributor revenue and a flat TOP TOY outlook.
• The company returned RMB 1.31 billion to shareholders in H1 through dividends and buybacks, including RMB 520 million of repurchases, and plans substantial additional buybacks. Management reaffirmed a full-year shareholder-return target of at least 50% of adjusted net profit, excluding foreign-exchange effects.

MINISO Group Stock Down 5.5%

Shares of MINISO Group stock opened at $10.79 on Friday. The firm’s 50 day moving average price is $11.94 and its 200-day moving average price is $14.39. The company has a quick ratio of 1.14, a current ratio of 1.53 and a debt-to-equity ratio of 0.76. MINISO Group has a 52-week low of $10.64 and a 52-week high of $25.92. The company has a market cap of $3.34 billion, a P/E ratio of 11.48, a PEG ratio of 1.42 and a beta of 0.11.

Insider Buying and Selling

In other news, CEO Guofu Ye bought 150,000 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The stock was bought at an average price of $3.35 per share, with a total value of $502,500.00. Following the completion of the transaction, the chief executive officer directly owned 315,740,482 shares of the company’s stock, valued at approximately $1,057,730,614.70. The trade was a 0.05% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Yunyun (Alice) Yang bought 150,000 shares of the stock in a transaction on Monday, June 1st. The stock was purchased at an average price of $3.35 per share, with a total value of $502,500.00. Following the completion of the purchase, the vice president owned 315,740,482 shares of the company’s stock, valued at $1,057,730,614.70. This represents a 0.05% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 73.50% of the company’s stock.

Institutional Trading of MINISO Group

Hedge funds and other institutional investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd acquired a new stake in shares of MINISO Group in the 3rd quarter worth $25,000. EverSource Wealth Advisors LLC grew its stake in MINISO Group by 37.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,223 shares of the company’s stock worth $41,000 after buying an additional 608 shares during the last quarter. PNC Financial Services Group Inc. increased its position in MINISO Group by 28.3% during the 3rd quarter. PNC Financial Services Group Inc. now owns 2,480 shares of the company’s stock valued at $56,000 after buying an additional 547 shares in the last quarter. Atlas Capital Advisors Inc. acquired a new position in MINISO Group during the 4th quarter valued at about $126,000. Finally, Vise Technologies Inc. purchased a new stake in MINISO Group in the third quarter valued at about $214,000. Hedge funds and other institutional investors own 17.16% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on MNSO shares. Wall Street Zen raised shares of MINISO Group from a “hold” rating to a “buy” rating in a research note on Saturday, May 30th. Zacks Research raised MINISO Group from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 28th. Weiss Ratings downgraded MINISO Group from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, June 25th. Finally, JPMorgan Chase & Co. reduced their price target on MINISO Group from $26.00 to $16.00 and set an “overweight” rating for the company in a research report on Friday, May 29th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $19.50.

About MINISO Group

MINISO Group (NYSE: MNSO) is a global retailer specializing in lifestyle and consumer goods. Since its founding in 2013, the company has focused on offering affordable, design-driven products across a broad range of categories. MINISO’s stores feature a clean, minimalist layout and emphasize a “fast fashion” inventory model designed to turn over goods quickly and respond to emerging trends.

The company’s product mix spans household items, kitchenware, cosmetics and personal care, stationery, toys, digital accessories, apparel and seasonal items.