HTSC research report stated that Miniso (09896.HK)(MNSO.US) plans to acquire 29.4% equity of Yonghui (601933.SH) and become the largest shareholder. The firm believes that Miniso will continue to focus on interest consumption to build IP products, and through sharing business resources with Yonghui, enhance the scale advantages of both supply chains and the operational efficiency of channels. The impact of this acquisition on Miniso's profit end needs to be continuously monitored, and the subsequent adjustment effectiveness of Yonghui Superstores needs to be observed.

HTSC pointed out that currently not considering equity income, maintaining Miniso's adjusted net profit expectations for 2024 to 2026 at 2.88 billion, 3.68 billion, and 4.6 billion RMB, considering the slight drag on the company's operating profit margin in the short term in the direct market, maintaining the company's target price at 51.21 yuan and a 'buy' rating.

The report mentioned that as of the first half of this year, Miniso had 6.23 billion RMB in cash. This acquisition is proposed to be funded by the company's internal financial resources and external financing. With sufficient cash on hand, it is believed that this is part of the financial investment layout in offline assets.