Miniso's Core Profit Likely Weighed by Slower Overseas Growth, Margin Dilution

Dow Jones09-08 09:09

0109 GMT - Miniso Group's 2026-2027 core profit could be pressured by slower-than-expected overseas sales growth and larger-than-expected margin dilution from directly-operated stores, say DBS Group Research analysts in a note. The Chinese lifestyle retailer's latest guidance was more cautious, reflecting restructuring in Europe where it aims to close 100-110 underperforming distributor stores, they say. The company's profitability could continue to be weighed by the shift toward directly-operated overseas stores and higher selling expenses, they say. The analysts cut their 2026-2027 core profit estimates by 23%-32%. Still, concerns around Miniso's margins are likely priced into its shares, the analysts add. DBS cuts its ADR target price to $12.00 from $20.00 but maintains a buy rating. ADRs last closed at $9.56.

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