Very fast growing retailer (20% revenue growth) and great returns on capital (15-20% ROIC)
Relatively low valuation at forward PE of 12
Riding the trends of leisure shopping and Asian pop culture
Capital returns to shareholders.
Led by an excellent founder
Scale as a moat
Catalyst events
I have looked at many popular emerging market names as I reshuffle my portfolio. I am not very convinced. The fact is the very popular great companies are already priced in as great companies. Let’s look at some different companies.. starting with Miniso.
History
The original intention of creating MINISO is to establish a lifestyle. It does not deliberately emphasize so-called popular fashion or individuality, but the products are genuine and unique; it also does not believe that popular brands should raise their prices
Miniso started in China as entrepreneur Ye Guofu, inspired by Japan’s affordable lifestyle stores, founded the brand to offer well-designed, inexpensive goods in 2013, and quickly expanded domestically before launching internationally in 2015.
Miniso Initially adopted a Japanese aesthetic. The brand grew rapidly through a franchise model, becoming a global retail phenomenon by offering well designed, affordable products, though facing scrutiny over its branding and origins.
Key dates:
Established in Guangzhou, China, in 2013, starting with a focus on design and affordability.
2015: First Overseas Store: Opened in Singapore.
2020: IPO : 4200 stores
In December 2020, MINISO launched a retail brand called TOP TOY to focus more on toys.
2022: the company started to remove Japanese elements from its branding amid huge controversy that it is copying Japan and pretending to be Japanese while being a Chinese company.
Business overview
2 Brands: Miniso, Top Toys
1 Affiliate: Yonghui supermarkets
1-Miniso brand:
Emerging value is a reader supported publication. In this article I don’t focus on numbers, but on the essence of Miniso and what makes it different and unique. Thanks for your support!