MNSO Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Given the investor's beginner level, long-term strategy, and available funds, MINISO Group Holding Ltd (MNSO) is not a strong buy at this time. While the stock shows potential undervaluation with a low forward P/E ratio and revenue growth, the recent financial performance, technical indicators, and lack of significant positive catalysts suggest holding off on investment until clearer signals emerge.
The technical indicators show mixed signals. The MACD is positive and expanding, indicating potential upward momentum. However, the RSI is neutral at 45.57, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is currently trading below the key pivot level of 16.204, with support at 15.596 and resistance at 16.811.
The stock has a forward P/E ratio of 10.53, which is below the industry average, suggesting potential undervaluation. Revenue increased by 32.71% YoY in the latest quarter.
Net income and EPS have significantly declined YoY, with net income dropping by -117.57% and EPS by -116.92%. Gross margin also dropped slightly. Analysts have lowered price targets, citing profitability concerns. The stock has underperformed its sector and the S&P 500 over the past month.
In Q4 2025, revenue increased by 32.71% YoY to $6.25 billion. However, net income dropped to -$141.52 million (-117.57% YoY), and EPS fell to -$0.11 (-116.92% YoY). Gross margin decreased slightly to 46.39% (-1.40% YoY).
BofA has lowered the price target from $21.70 to $20.40, maintaining a Neutral rating. Analysts express concerns about profitability and have reduced future EPS estimates by 4-5%.
