Citigroup published a report, initiating coverage on Miniso (09896.HK) with a "buy" rating and a target price of 52.2 yuan. The bank estimates that the group's core net profit will expand by 24%, 23%, and 20% annually in 2024/25/26.

Citigroup expects that the sales growth of Miniso's IP commodities will drive profit margins, while the expansion of overseas business will drive group revenue growth at a compound annual growth rate of over 20% from 2024 to 2026. The bank believes that if Yonghui's performance turns out better than expected, it will provide options value for Miniso investment case.