DBS lowers Miniso’s core profit forecast for 2026 to 2027 by 23% to 32%

DBS Group Research analysts stated in a report that MINISO's core profit for 2026-2027 may come under pressure due to overseas sales growth being slower than expected and a greater-than-expected dilutive effect on profit margins from directly operated stores. MINISO’s latest guidance is more cautious, reflecting its restructuring in Europe, with plans to close 100-110 underperforming distributor stores. The company's profitability may continue to be dragged down by the transformation to overseas direct-operation stores and rising selling expenses. Analysts have lowered their core profit forecasts for 2026-2027 by 23%-32%. However, market concerns about MINISO's margins may have already been reflected in the share price. DBS lowered its ADR target price from $20 to $12 but maintained a Buy rating.