Miniso Shares Surge on Exceptional Quarterly Performance

Miniso Holding Ltd has delivered a remarkable financial performance for its second quarter of fiscal 2025, propelling its stock price upward by nearly 35% in a single week. The catalyst for this explosive rally was record-breaking revenue that significantly surpassed the company’s own ambitious forecasts.

Driving Forces Behind the Impressive Results

The specialty retailer’s success was underpinned by two key factors: robust overall growth and a crucial return to positive same-store sales. Total revenue climbed 23.1% year-over-year to reach $693.2 million. Perhaps more importantly, the company achieved positive Same-Store Sales Growth (SSSG), indicating both strengthened brand appeal and improved productivity across its established store network.

• Revenue growth exceeded guidance, coming in at 23.1%
• A return to positive SSSG after previous periods of contraction
• Operating profit increased by 11.3% to $116.7 million

Global Growth Strategy Pays Dividends

A major contributor to these outstanding figures was Miniso’s aggressive international expansion strategy. Revenue generated by the MINISO brand in overseas markets soared by 28.6%, now accounting for 42.6% of the company’s total revenue. The TOP TOY business segment performed even more spectacularly, registering growth of 87.0%. This expansion is also physical; the total store count grew by 842 locations, bringing the global footprint to 7,905 stores.

Should investors sell immediately? Or is it worth buying Miniso Holding Ltd?

While top-line growth was strong, the company’s adjusted net profit saw a decline of 16.7%, primarily attributed to losses from an equity investment. However, when excluding this one-off factor, the adjusted net profit actually demonstrated healthy growth, rising by 10.6%.

Market Analysts Revise Positions Upward

The unexpectedly strong quarterly report triggered significant reactions from financial institutions. In a notable move, Jefferies upgraded its rating on Miniso shares from “Hold” to “Buy” and substantially raised its price target from $18.50 to $26.20. Bank of America also revised its stance, moving from “Underperform” to “Neutral.” The prevailing analyst consensus for the stock now firmly sits at “Buy.”

Looking ahead, the company’s leadership has expressed strong confidence, raising its full-year 2025 revenue growth forecast to a minimum of 25%. This optimistic outlook is further bolstered by the announcement of an interim dividend, a move designed to reward and strengthen shareholder confidence. Although the stock experienced a slight pullback following its rapid ascent, the company’s solid fundamental strengths suggest a continued positive trajectory.