MINISO Group Holding Limited (09896) saw its stock plummet by 5.10% in pre-market trading on Monday, following a research report from CICC that lowered the target price for the company's Hong Kong-listed shares. Despite maintaining an "Outperform Industry" rating, CICC reduced its target price for MINISO by 12% to HK$50.18, citing industry valuation adjustments.
The stock's sharp decline comes even as CICC expressed optimism about MINISO's refined operations and continuous efficiency improvements in both domestic and international businesses. The company's 3Q25 performance was in line with expectations, with revenue growing 28% year-over-year to RMB 5.8 billion and adjusted net profit rising 12% to RMB 770 million. MINISO's management expects 4Q25 revenue to grow 25-30% year-over-year, with low double-digit same-store sales growth in both China and the U.S.
While CICC maintains a positive outlook for MINISO, with the new target price still offering a 28% upside potential, investors appear to be focusing on the target price reduction. This reaction highlights the market's sensitivity to analyst adjustments, even when the overall assessment remains favorable. As MINISO continues its expansion and efficiency improvements, particularly in overseas markets like the U.S. and Southeast Asia, investors will be closely watching whether the company can meet its growth expectations and justify its valuation in the face of industry-wide adjustments.
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