Soochow Securities reiterated its "Buy" rating on MINISO Group Holding Limited (09896), highlighting the company's leadership in the self-owned brand + IP-driven retail sector. The firm sees significant growth potential from overseas expansion and IP strategies, with possible margin improvements in U.S. direct-operated stores as same-store performance continues to recover. Key points from the report include:
**Financial Performance in 2025Q3** MINISO reported revenue of RMB 5.80 billion, up 28.17% YoY, exceeding guidance of 25–28%. Net profit attributable to shareholders fell 31% YoY to RMB 440 million, primarily due to equity-method investment losses from Yonghui Superstores and higher share-based compensation expenses. Excluding one-off items such as share-based payments, convertible bond interest, and Yonghui-related losses, adjusted net profit rose 11.75% YoY to RMB 767 million. Same-store GMV posted mid-single-digit growth YoY.
**Domestic Operations** Domestic MINISO revenue reached RMB 2.909 billion (+19.36% YoY), with high single-digit same-store GMV growth in Q3, accelerating from Q2. The company maintained its "large-store, high-quality store" strategy, adding 105 net new stores in China, bringing the total to 4,407 by quarter-end.
**Overseas Expansion** Overseas revenue grew 28.6% YoY to RMB 1.94 billion, with 117 new stores opened (total: 3,424). Same-store GMV saw low single-digit growth. Management emphasized slowing direct-operated store expansion in favor of quality, noting that new U.S. stores in 2025 averaged 1.5x the sales volume and 30% higher productivity per square foot than older locations.
**TOP TOY Momentum** TOP TOY revenue surged 111.5% YoY to RMB 575 million in Q3, with 14 net new stores (total: 307). Same-store GMV accelerated to mid-single-digit growth.
**Outlook** For Q4 2025, MINISO guided revenue growth of 25–30% YoY, with low double-digit same-store growth in China and the U.S. Adjusted operating margin declines are expected to stabilize near Q3 levels. Seasonal strength in U.S. consumer demand could further boost performance.
**Risks** include weaker-than-expected consumption and overseas operational challenges.