Miniso posts 28.5% revenue growth but margins tighten; plans quality expansion with 450-500 new stores by FY26

Miniso reported a strong 28.5% year-over-year revenue increase driven by overseas growth and its TOP TOY segment. However, the company faced margin pressure as adjusted operating margin dropped to 14.7% due to rising selling and distribution costs outpacing revenue gains. Management is shifting focus to quality over quantity in expansion, targeting high double-digit revenue growth and adding 450-500 net stores by fiscal year 2026. Despite margin risks and a discount in China, the stock is considered undervalued with a fair value estimate of $21 compared to the current price of $12.50.