Zhitong Finance App learned that Citigroup released a research report stating a "buy" rating for Miniso (09896) with a target price of 52.5 Hong Kong dollars. Miniso's management expresses strong expectations for overseas market sales revenue in the fourth quarter of 2024.

The report states that the company's management expects that with high sales growth and profit expansion in overseas markets, sales and net income growth in 2025 will accelerate year-on-year. Management expects the group's revenue to increase by 25-30% year-on-year in the fourth quarter of 2024, including an expected 45-50% year-on-year growth in overseas sales; it is also expected that Miniso's sales in China will increase by a low single-digit percentage year-on-year, with 76 new stores added in the fourth quarter; and Top Toy's sales are projected to grow by 50-55% year-on-year, with 14 new stores added in the fourth quarter.

Miniso's management points out that the year-on-year sales growth in overseas markets in 2025 will accelerate, mainly benefiting from sustained same-store sales growth (SSSG) and store expansion. In addition, the group's gross margin (GPM) is expected to increase year-on-year due to higher sales contributions from overseas markets and intellectual property products. Furthermore, the gross margin for direct retail (self-operated stores) in the USA is approximately 80%. The EBIT profit margin for its stores in the United States is slightly above 20%, showing a slight increase compared to the same period in the first three quarters of 2024. The bank predicts an improvement in the EBIT profit margin of the company's US stores in 2025.