Chinese retailer Miniso surged for 3rd straight day to hit new record high, several banks raised target prices

 

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Chinese retailer MINISO surged for the 3rd consecutive trading day on Thursday, jumping as much as nearly 7% to hit HK$47.75 at one point, marking a new record high. The stock closed 5.7% higher at HK$47.2.

The company has reported a revenue of 3.25 billion yuan for the quarter ended June 30, beating market expected 3.17 billion yuan, surging 40.3% from a year earlier, up 10.1% from the previous quarter. Adjusted net revenue surged 156.3% to 571 million yuan, surging 18.3 from the previous quarter. 

For the fiscal year 2023, its revenue rose 13.8% to 11.47 billion yuan, while adjusted net profit soared 155.3% to 1.85 billion yuan. Adjusted net profit margin reached 16.1%, compared to 7.2% a year ago.The management maintained the target to increase the number of its stores in China this year to 5,000.

CICC raised the target price for Miniso’s US-traded shares by 8% to $27.05, with Outperform rating, to reflect the valuation premium brought by its global operational capability. The bank raised the forecast of the company’s earnings per share in 2024 and 2025 by 3% and 4%, respectively, to 7.44 yuan and 8.95 yuan.

BofA Securities raised its Hong Kong shares’ target price to HK$49.5 from HK$46.6, maintaining a Buy rating. The bank raised the forecast of its earnings per share in 2024 – 2025 by 4.8% and 5.6%, respectively.

Goldman Sachs raised the target price to HK$54, keeping it on its Conviction Buy List. The bank also raised the forecast of the company’s net profit in 2024 – 2025 by about 10%