Miniso Group Holding Ltd.
NYSE: MNSO
Market Cap:
$4.11B
Last Close:
13.42
52 Week Range:
12.05 – 35.21
What they do
Miniso is a …
What we like
The “Target” of Dollar Stores
Chic, upscale image, including brightly lit attractive stores with cheap, everyday goods in popular shopping areas. Focus on impulse buying.
Move into Toys, Collectibles
These products carry much higher margins than generic toys, often purchased by adult collectors. Can also be sold from vending machines, following model of rival Pop Mart.
Low Regulatory Risk
In the current climate, the company’s presence in the low-tech retail space give it relatively low regulatory risk.
Global Expansion
Company is quickly ramping up its formula of chic, entertainment-style stores catering to impulse buying overseas. International stores made up 38% of total at end of June. Now in 98 overseas markets.
Potential downside/risk
The “Target” of Dollar Stores
Chic, upscale image, including brightly lit attractive stores with cheap, everyday goods in popular shopping areas. Focus on impulse buying.
Move into Toys, Collectibles
These products carry much higher margins than generic toys, often purchased by adult collectors. Can also be sold from vending machines, following model of rival Pop Mart.
Low Regulatory Risk
In the current climate, the company’s presence in the low-tech retail space give it relatively low regulatory risk.
Global Expansion
Company is quickly ramping up its formula of chic, entertainment-style stores catering to impulse buying overseas. International stores made up 38% of total at end of June. Now in 98 overseas markets.
Highlights
Latest quarterly report
Revenue up 59.2% to $382.9 million.
Profit of $17.2 million, versus year-earlier loss.
Gross margin 25.8% from 24.4% year-earlier
Total store count rose 12% to 4,749 shops year-on-year, including 2,939 China stores and 1,810 international stores.
New Top Toy concept had 33 stores at the end of June, vs 9 at end of March and none a year earlier.
Latest annual report
Revenue from continuing operations up 1% to $1.4 billion
Annual loss for 2020 widened to $221 million from a $40 million loss in 2019
At June 30, 2021 company’s global store count reached 4,749, up 12% from 4,222 a year earlier.
Total China store count rose 16% to 2,939 at the end of June 2021 from 2,533 at end June 2020.
International store count at end June rose 7% to 1,810 from 1,689 a year earlier.
Key metrics
June 2021
March 2021
Dec 2020
Sept 2020
Revenue
2.47 bln yuan
2.23 bln yuan
2.30 bln yuan
2.07 bln yuan
Profit
115 mln yuan
122 mln yuan
21 mln yuan
(1.67 bln yuan)
China stores
2,939 (99.8%)*
2,812
2,768
2,633
Int’l stores
1,810 (94%)*
1,775
1,746
1,697
Top Toy
33 (94%)*
9
NA
NA
* % of stores that are franchised
Latest price trends:
After peaking at a high of $35 in February, the company’s shares have moved steadily downward and are now trading around their 52-week low at around $13. The pattern is similar for many U.S.-listed Chinese shares, which peaked in February/March and have moved steadily lower since then on concerns about regulatory crackdowns in many sectors, mostly high-tech. As a retailer, Miniso does not appear to be in a sector at high risk for such a crackdown. The company trades at a P/E of about 30 based on analyst forecasts for this year, versus 19 for Target and 15 for Dollar Tree.
Sep 27, 2021