MNSO(MNSO)2024-11-29 17:02Financial Data and Key Metrics - Revenue for the first three quarters of 2024 increased by 23% YoY to RMB 12.28 billion, with an average store count increase of 90% and same-store sales growing in low-single digits [6] - Adjusted net profit margin was 50.7%, with adjusted EBITDA increasing by 21% to an adjusted EBITDA margin of 25.3% [41][42] - Inventory turnover days were 85 days, with 30% of MINISO's brand inventory located overseas, up from 21% the previous year [43][44] Business Line Performance - MINISO China revenue grew by 12.3% YoY, with offline store revenue up 11.8% and e-commerce revenue up 90% [12] - Overseas revenue exceeded RMB 4.5 billion, representing a 41% YoY growth, with direct-operated markets growing by 64% and distributor markets by 22% [20] - TOP TOY revenue grew by 43% YoY, with same-store sales up 5%, and 86 new stores added, progressing towards the annual target of 400 stores [27] Market Performance - In China, same-store sales declined by mid-single digits, with high-tier cities outperforming lower-tier cities [15] - Overseas same-store sales showed high-single-digit growth, with direct-operated markets contributing 67% of net new stores, primarily from the US and Indonesia [21] - The US market saw mid-single-digit growth, with plans to expand store operations and improve operational efficiency [64] Company Strategy and Industry Competition - The company is focusing on quality retail and interest-based consumption, aiming to combine product innovation with consumer experience [7] - MINISO plans to add 900 to 1,100 new stores globally each year, with IP product sales contributing over 50% by 2028 [11] - The company is mitigating potential US tariff risks by increasing local sourcing to 30% and establishing backup supply chains in South Asia, Japan, Korea, and the US [24][25] Management Commentary on Operating Environment and Future Outlook - The company remains optimistic about MINISO China's growth in 2025, despite a challenging micro-consumption environment [14] - Management expects Q4 revenue growth of 25% to 30%, with overseas market growth projected at 45% to 50% [58] - The company is confident in achieving its full-year targets, with revenue growth expected to be 20% to 30% YoY and adjusted net profit target of RMB 2.8 billion [51] Other Important Information - The company completed the acquisition of a 29.4% stake in Yonghui, aiming to transform traditional supermarket approaches and improve product service and consumer experience [7][48] - MINISO has collaborated with over 150 IPs globally, including six of the world's top 10 IP licensors, and plans to deepen collaboration with leading global IP licensors [17] - The company has distributed cash dividends exceeding RMB 600 million and returned approximately RMB 1.6 billion to shareholders through dividends and share buybacks [45][46] Q&A Session Summary Question: Q4 Outlook and Growth Opportunities in China - Management expects Q4 revenue growth of 25% to 30%, with overseas market growth projected at 45% to 50% and direct-operated markets growing by 70% to 75% [58] - In China, the company anticipates low-teens growth, driven by e-commerce and store expansion, with plans to add 400 new stores in 2024 [59][60] Question: Overseas Market Expansion and Store Operations - The company plans to add 650 to 700 stores overseas in 2024, with direct-operated markets contributing 67% of net new stores [21][60] - In the US, the company is focusing on improving operational efficiency and controlling costs, with plans to expand store operations during the holiday season [64] Question: Yonghui Acquisition and Performance Improvement - MINISO is supporting Yonghui in optimizing procurement costs, building self-owned brands, and improving store operational efficiency [69][70][71] - The company plans to close underperforming stores and focus on high-quality development, aiming to improve profitability and operational efficiency [72][73] Question: Same-Store Performance and IP Strategy - Same-store sales in China are expected to improve with refined IP product allocation and interest-based consumption strategies [81] - The company has seen strong performance from Harry Potter IP products, with significant sales contributions in overseas markets [87][88] Question: TOP TOY International Expansion and O2O Business - TOP TOY is focusing on profitability and international expansion, with plans to optimize product structure and improve margins [94] - The company is developing its O2O business, with significant growth in the past three quarters and plans to leverage omni-channel strategies to improve same-store performance [85][99] Question: US Market and Competition Landscape - The company is maintaining an asset-light business model in the US, with plans to introduce third-party stores to improve leverage [109] - MINISO is confident in its competitive advantage in the ACG market, with plans to launch new products and deepen IP collaborations [110][111]