＜Research＞BofAS Expects MNSO (09896.HK) 2Q Results Solid; Shrs Oversold

　　BofA Securities issued a report, forecasting a solid 2Q results for MNSO (09896.HK) -1.100 (-3.165%) Short selling $4.07M; Ratio 7.989% (MNSO.US) , with revenues expected to rise 23% YoY, and core non-IFRS NPAT to hike more than 20% YoY, among which China and overseas markets were expected to deliver growth of 17% and 35%, respectively.

　　According to the broker, China's resilient SSSG, rapid online sales growth in China, successful launch of IP-licensed products and accelerated overseas store expansion were remarkable. The broker broadly maintained its TP on MNSO of HKD59.3 for H-shares and USD30.2 for ADRs.

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　　The broker assumed that the company's shares have been oversold recently, and attributed the recent share price correction to rising concerns about trade tariffs and weak domestic consumption. But it maintained a Buy rating on the basis of the company's sustained market share growth in the retail market, strategy shift from value-for-money to interest-driven, potential brand upgrades and unit-economy optimization to drive margins in overseas markets, ability to leverage on China's global factory status to increase overseas sourcing and seek alternative OEMs from ASEAN countries, as well as the attractive valuation.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-18 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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