Section 1: Company Overview and Fundamentals

1.1 Company Overview:

MINISO Group Holding Ltd is a China-based holding company mainly engaged in the retail and wholesale business of lifestyle and pop toy products. Both MINISO and TOP-TOY are brands owned by the company. Home furnishings, tiny electronics, textiles, accessories, toys, cosmetics, personal care, snacks, aroma & perfumes, stationery, and gifts are just a few of the things offered by MINISO.

1.2 The Key Positives, Negatives, and Investment summary

 

1.3 Key Metrics:

The graphs below demonstrate the rising trend in the company's sales, gross profits, and gross profit margin, exception being Q3FY20 because of starting of Corona virus lockdown at that time because of first wave all over the globe. MNSO managed to generate revenue of USD 275.1 million even in the situation of lockdown in China. Therefore, once the situation becomes better in China, MNSO is expected to generate decent revenue levels with respectable gross profit margins above 30%.

1.4 Top 10 shareholders:

• The top 10 shareholders together form ~17.89% of the total shareholding, signifying diluted shareholding. CPP Investment Board and Guofu (Ye) are the biggest shareholders, holding the maximum stake in the company at ~4.25% and ~4.14%, respectively.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of Q2FY22:

Section 3: Key Risks and Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 17 August 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.