$MNSO(09896.HK)$POP MART(09992.HK)

III. MINISO: Possessing the Attributes of Fast Retailing and QQ Music, with a Dual Strategy of Platform Retail and Capital Deployment

Switching perspectives to look at the MINISO in my portfolio, in my view, this company simultaneously possesses the dual attributes of Fast Retailing (Uniqlo's parent company) and QQ Music, forming a distinct contrast with Pop Mart's development path focused on high store efficiency in small shops:

1. Core Foundational Capability Differences

Pop Mart focuses on premium stores, relentlessly pursuing single-store operational efficiency; MINISO leverages a massive offline store network across all channels to build a traffic platform, possessing strong brand collaboration and category licensing capabilities, along with top-tier supply chain control strength in the industry.

2. Core Business Logic

It covers a full range of daily consumer goods, creating a comfortable one-stop offline shopping experience to reduce user decision-making costs; it retains customer traffic through a rich and diverse product matrix, capturing the public's mindshare for essential daily retail consumption.

Review of its two major key projects: TOP JOY, Yonghui Superstores

1. TOP JOY

TOP JOY is equivalent to a low-cost venture capital project within the MINISO Group. The initial investment cost is controllable, and it is now nearing an IPO. The project can operate independently to generate cash flow while also achieving product synergy and two-way traffic collaboration with the parent company, and it is by no means a failed business.

2. Yonghui Superstores

MINISO's precise move to acquire Yonghui Superstores before the market rally in September 2024 is sufficient proof of Ye Guofu's top-tier capital operation skills. Ye Guofu has always adhered to a core investment philosophy: when the market doesn't understand, discovering opportunities early makes them yours.

At this stage, Yonghui's fundamentals are continuously improving: the group is closing down a batch of long-term loss-making stores while simultaneously implementing new-concept renovated stores, actively driving innovation in the traditional supermarket industry. My personal judgment: From the business model of Pang Donglai, Ye Guofu has grasped the operational logic of the new generation of high-end supermarkets. Relying on the supply chain resources and industry experience accumulated over years of deep involvement in retail, he aims to empower the traditional supermarket industry to complete its transformation and upgrade.

Simultaneously, the new CEO, Wang Shoucheng, is pragmatic, hardworking, and deeply rooted in physical retail. Compared to the previous Zhang brothers' management team, his operational execution ability is stronger, making Yonghui's subsequent reform fundamentals worth continuous tracking.