MINISO Group Shares Surge After BofA Upgrade Following Q2 Earnings Beat

MINISO Group Holding Ltd shares rose after BofA upgraded the company following a Q2 beat. The China-based holding company develops, retails, and wholesales lifestyle and pop toy products with intellectual property design. MINISO products include home decor, electronics, and toys, while TOP TOY brand products include blind boxes, toy bricks, and collectible dolls. The company operates in China, Asia, America, Europe, and other regions.

MINISO Group Holding Ltd (MNSO) shares gained 2.4% on Thursday after the global value retailer reported second-quarter earnings that significantly exceeded analyst expectations [2]. The company's Q2 results beat expectations, driven by strong revenue growth and improved same-store performance.

BofA upgraded MNSO to Neutral from Underperform with a target price of $24, up from $16.50, after the company's Q2 results beat expectations [1]. The firm raised its 2025 and 2026 non-IFRS EPS estimates by 11% and 2%, respectively, noting that its increased estimates reflect higher estimates, an increased target multiple, and a roll-forward of its valuation basis.

MINISO Group reported adjusted earnings per ADS of RMB2.24 ($0.31), beating analyst estimates of RMB1.75 by RMB0.49 [2]. Revenue reached RMB4.97 billion ($693.2 million), surpassing the consensus estimate of RMB4.86 billion and representing a 23.1% increase YoY. The company's mainland China operations achieved low-single digit growth, while its TOP TOY brand revenue surged 87% YoY to RMB402.2 million.

MINISO Group's overseas expansion continued with 554 net new MINISO stores added YoY, bringing its total global store count to 7,905. Notably, 74.5% of new MINISO stores opened in the past twelve months were in overseas markets [2].

Jefferies analyst Anne Ling upgraded the rating for MINISO Group Holding from Hold to Buy and raised the price target from $18.50 to $26.20, marking a 41.62% increase [3]. The current price target adjustment reflects a strong belief in the company's potential growth and market performance.

MINISO Group Holding Ltd is a value retailer offering a variety of trendy lifestyle products featuring IP design. The company's product categories include home decor, small electronics, textiles, accessories, beauty tools, toys, cosmetics, personal care, snacks, fragrance and perfumes, and stationery and gifts. Its segment includes the MINISO brand, which is engaged in the Design, buying, and sale of lifestyle products, and the TOP TOY brand, which is engaged in the Design, buying, and sale of pop toys. The company generates maximum revenue from the MINISO brand segment. Geographically, it derives a majority of its revenue from China.

Based on the one-year price targets offered by 12 analysts, the average target price for MINISO Group Holding Ltd is $24.51 with a high estimate of $27.98 and a low estimate of $18.49. The average target implies an upside of 10.54% from the current price of $22.17 [3].

References:
[1] https://www.tipranks.com/news/the-fly/miniso-upgraded-to-neutral-at-bofa-after-q2-beat-thefly
[2] https://www.investing.com/news/earnings/miniso-group-shares-rise-as-q2-earnings-beat-expectations-93CH-4203720
[3] https://www.gurufocus.com/news/3075050/jefferies-upgrades-miniso-group-holding-mnso-to-buy-raises-price-target-mnso-stock-news