Lifestyle products retailer MINISO Group Holding (NYSE: MNSO) copied Japanese retail chains or brands Uniqlo, Muji and Daiso - and have arguably done it better than the originals.
OVERVIEW:
They have successfully entered 100 countries and regions and opened more than 5,000 stores around the world, covering the core business districts of world-renowned cities such as New York, Los Angeles, Paris, London, Dubai, Sydney, and Istanbul.
Rather than operate an independent network of franchisees, our seven-month investigation of Chinese corporate records and store level data indicates, in our opinion, that hundreds of stores are secretly owned and operated by MINISO executives or individuals closely connected to the chairman.
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- MNSO reported its C1Q23 revenue (3.7%)/1.1% vs. our estimate/consensus, while non-GAAP net income beat our estimate/consensus by 17.7%/26.1% respectively, driven by gross margin ramp-up strategy and G&A reduction;
- We think MNSO’s brand upgrade strategy is success so far, as it offered more high gross margin products without significantly diluting sales.
- We maintain Buy rating and raise TP by US$0.5 to US$25.5 to factor in the better gross margin and store expansion outlook.
[Miniso Group (MNSO US) Target Price Change]: Brand Upgrade Strategy Bears Fruit…Reiterate BUY
17 May 2023 20:07
https://www.smartkarma.com/insights/miniso-group-mnso-us-target-price-change-brand-upgrade-strategy-bears-fruit-reiterate-buy
- MNSO reported its C1Q23 revenue (3.7%)/1.1% vs. our estimate/consensus, while non-GAAP net income beat our estimate/consensus by 17.7%/26.1% respectively, driven by gross margin ramp-up strategy and G&A reduction;
- We think MNSO’s brand upgrade strategy is success so far, as it offered more high gross margin products without significantly diluting sales.
- We maintain Buy rating and raise TP by US$0.5 to US$25.5 to factor in the better gross margin and store expansion outlook.