Ye Guofu, the founder of Mingchuang Youpin, should be in a good mood recently. After the group's revenue increased by 13.8% in the fiscal year 2023 and adjusted net profit increased by 155.3%, its revenue and profit continued to grow in the first quarter of the fiscal year 2024.
On November 21, Mingchuang Youpin (09896. HK) released its first quarter report for the fiscal year 2024 as of September 30, 2023. The group's revenue was 3.791 billion yuan, a year-on-year increase of 36.7%; The adjusted net profit was 642 million yuan, a year-on-year increase of 53.8%; The group's gross profit was 1.584 billion yuan, a year-on-year increase of 60.2%, and the gross profit margin was 41.8%, breaking through 40% for the first time. Among them, Mingchuang Youpin's disposable products, including its own brands such as "Lazy to Wash", have a quarterly sales revenue of over 100 million yuan.
Ye Guofu, Chairman and CEO of Mingchuang Youpin, stated that this was the best quarter in the company's history so far, with revenue, profit margin, and net store opening reaching historic highs. "MINISO's domestic offline and overseas businesses maintained a year-on-year growth rate of over 40% in this quarter, mainly driven by the GMV growth rate of nearly 25% in both domestic and overseas single stores
The financial report shows that Mingchuang Youpin's revenue mainly comes from the domestic and overseas markets, as well as the top three business sectors. Especially in the areas of super large stores and IP co branding, it has driven the growth of stores and sales in various sectors. As of September 30th, the number of Mingchuang Youpin stores exceeded 6000 for the first time, reaching 6115, an increase of 819 compared to the same period last year, and an increase of 324 compared to the same period last month. Among them, nearly 60% of its new stores in the domestic market come from third tier and below cities.
According to data from the National Bureau of Statistics, in the first three quarters, the total retail sales of consumer goods in China reached 34210.7 billion yuan, a year-on-year increase of 6.8%. Among them, retail sales of goods reached 3050.02 billion yuan, an increase of 5.5%. Supported by the rebound in domestic consumption and the peak summer sales season, from July to September 2023, the revenue of Mingchuang Youpin in the domestic market was 2.496 billion yuan, an increase of 34.7% compared to the same period last year. Among them, TOP TOY's revenue was 181 million yuan, an increase of 46.1% year-on-year.
Since the beginning of this year, its super store strategy has been rapidly implemented, gradually opening large stores with an area of about 1000 square meters, such as the Xi'an Night City store and the Guangzhou Beijing Road store.
In this fiscal quarter's performance conference call, Ye Guofu stated that the performance of Mingchuang Youpin stores is greatly affected by customer flow. From January to September this year, Mingchuang Youpin's domestic same store sales recovered to 93% of 2019, but there is a significant difference between weekdays, weekends, and holidays. The recovery rate on weekdays is about 90%, while on weekends it is about 95%. On holidays such as May Day and November, there is a low single digit growth. The reason behind this is that the flow of people on holidays is higher than on weekends, Weekends are higher than weekdays.
He emphasized, "Only large stores can achieve great performance. With the upgrading of our stores, we will gradually upgrade our channel system nationwide. In the future, we will encourage and prepare more large stores with monthly sales of tens of millions of yuan
In the fastest growing same store sales market in the United States, Mingchuang Youpin added 21 stores this fiscal quarter, and its sales growth is also related to the landing of the world's first flagship store. In May of this year, Mingchuang Youpin's first global flagship store appeared in Times Square, New York, USA. The store covers an area of approximately 400 square meters, with daily sales exceeding 550000 yuan, setting a global record for daily sales in stores.
Since the beginning of this year, the overseas market of Mingchuang Youpin has achieved steady growth. During the reporting period, its overseas market revenue was 1.295 billion yuan, a year-on-year increase of 40.8%; There are 2313 stores in overseas markets, an increase of 286 year-on-year and 126 month on month. Among them, countries such as Mexico, the United States, Canada, and Spain performed well, with same store sales increasing by 133%, 202%, 130%, and 101%, respectively.
Mingchuang Youpin has accelerated the pace of opening flagship and themed stores overseas. On November 10th, the flagship store of Mingchuang Youpin UK officially opened on Oxford Street in London, covering an area of nearly 3000 square feet (approximately 278 square meters). This is its continued layout in the city center after opening the world's first blind box themed store on Shaftsbury Avenue in London at the end of September.
It is worth mentioning that the best-selling products of Mingchuang Youpin in overseas markets are dolls, blind boxes, aromatherapy, etc. This year, after inspecting multiple overseas markets, Ye Guofu also proposed a strategy of focusing on big IP, big toys, and big beauty.
During the reporting period, the sales of representative products such as blind boxes, dolls, and aromatherapy in these three categories reached 60% in the overseas market. Ye Guofu stated that dolls are the best-selling category of Mingchuang Youpin and will continue to strengthen. Blind boxes have seen significant sales growth in recent quarters, both domestically and overseas, Mingchuang Youpin will continue to seize market share through IP cooperation, and next year consumers will also see more big IPs and Mingchuang Youpin achieve cooperation
However, the capital market did not respond warmly to the new quarter's financial reports of Mingchuang Youpin. As of the noon close on November 22nd, the stock price of Mingchuang Youpin Hong Kong shares fell nearly 8 points, closing at HKD 49.75 per share, but the cumulative increase during the year still exceeded 130%.