Miniso net soars on China's reopening

Miniso's (9896) adjusted net profit for the third quarter ended March 2023 skyrocketed 3.36 times to 483 million yuan (HK$543.3 million), as sales soared after China ended all its Covid restrictions late last year.

Shares of Miniso once surged as much as 10 percent before closing at HK$34.05 apiece, 2.56 percent higher than the previous close.

The low-cost retailer and variety store chain reported 2.95 billion yuan in revenue for the first three months of this year, up by 26 percent from a year ago.

Gross profit rose 64 percent yearly to 1.16 billion yuan while gross margin climbed to 39.3 percent for the first three months this year from 30.2 percent one year ago, though the reading is lower than 40 percent in the previous quarter.

The adjusted earnings before interest, taxes, depreciation and amortization advanced 1.6 times yearly to 706.4 million yuan during the January-March period.

As of March, Miniso has 5,514 stores, increasing by 401 outlets year-on-year, including 186 new in China and 215 in overseas markets.

In other news, the executive director Li Minxin resigned due to his age, but plans on continuing this role as Miniso's executive vice president, the company said in a statement.