MINISO Group shares rise as Q2 earnings beat expectations

MINISO Group (MNSO) shares gained 2.4% after reporting second-quarter earnings that significantly exceeded analyst expectations, with adjusted EPS of RMB2.24 ($0.31) and revenue of RMB4.97 billion ($693.2 million), up 23.1% YoY. This strong performance was driven by positive same-store GMV growth, an 87% surge in TOP TOY brand revenue, and robust overseas expansion, with 74.5% of new stores in international markets. The company, which also declared an interim dividend, anticipates accelerated revenue growth for the remainder of 2025, signaling strong operational momentum and management confidence.

Analysis

MINISO Group Holding (MNSO) delivered a strong second-quarter performance, significantly exceeding analyst expectations on both revenue and earnings. The company reported adjusted EPS of RMB2.24, which was RMB0.49 above consensus, alongside revenue of RMB4.97 billion that represented a 23.1% year-over-year increase. Key operational drivers included a critical turnaround in same-store GMV growth, which shifted from a mid-single digit contraction in the prior quarter to positive territory. Growth was further fueled by an 87% YoY surge in revenue from its TOP TOY brand and a successful overseas expansion strategy, which accounted for 74.5% of the 554 net new stores opened in the past year. Management's confidence is underscored by the announcement of an interim dividend of $0.2896 per ADS and a robust cash position of RMB7.47 billion. Critically, the company's outlook is strong, with the CFO forecasting an acceleration in revenue growth for the remainder of 2025, signaling sustained operational momentum.

Key Decisions for Investors

• Given the substantial earnings beat and management's guidance for accelerating growth, the modest 2.4% share price increase could be viewed as an opportunity, as the market may not have fully priced in the positive outlook.
• Investors should closely monitor the execution of the overseas expansion and the continued high-growth trajectory of the TOP TOY brand, as these are the primary catalysts supporting the company's forward guidance.
• The new interim dividend, supported by a strong balance sheet, introduces a valuable capital return component that enhances the stock's investment thesis and provides a degree of valuation support.