MINISO Group Holding Limited saw its shares rebound by over 6%. At the time of writing, the stock was up 5.79% to HK$25.56, with a turnover of HK$159 million.

The company recently announced its first-quarter results, reporting group revenue of RMB 5.688 billion, a year-on-year increase of 28.5%. Adjusted net profit was RMB 551 million, down 6.1% year-on-year. Excluding exchange gains and losses, it stood at RMB 633 million, up 8.1% year-on-year.

During the period, the company's operating profit reached RMB 1.52 billion, an increase of 114.3% year-on-year. This included an unrealized and mark-to-market gain of RMB 880 million from the fair value change of an investment in a limited partnership focused on the artificial intelligence industry, and a share of profit from its investment in Yonghui of RMB 80 million.

Looking ahead, it is believed that the effects of upgrading store formats and building the membership system in Mainland China will continue to be realized, with the potential to replicate this experience in overseas markets. Coupled with the advancement of its proprietary IP strategy, these factors are expected to support the company's growth certainty. Over the next two years, the company's profitability is anticipated to further improve driven by operating leverage.

The current valuation is considered attractive, with the stock price corresponding to an expected price-to-earnings ratio of 10 times for 2026. A buy rating is maintained.