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Miniso Group - AI Stock Analysis

Analysis generated November 27, 2024

Miniso Group is a Chinese low-cost retailer and variety store chain that specializes in household and consumer goods, including cosmetics, toys, kitchenware, and electronics. The company has successfully expanded its footprint globally, with a presence in numerous countries and regions. Known for its wide range of affordable and stylish products, Miniso caters to a young demographic seeking trendy yet economical shopping options. Its business model relies on quick product turnover and an extensive supply chain to keep costs low while maintaining product quality.

Fundamental Analysis

The financial health of Miniso Group appears strong based on recent data. For the last quarter, Miniso reported a revenue of ₹4.04 billion. This represents an increase of 8.37% from the previous quarter, indicating positive short-term growth. When compared to the same quarter last year, the revenue has surged by 24.08%, showcasing robust year-over-year growth.

Net income for the quarter stood at ₹588 million, reflecting a 0.89% increase from the prior quarter. On a yearly comparison, net income has risen by 8.96%, underscoring consistent profitability. The company's EBITDA for the last quarter was ₹785 million, marking a marginal increase of 0.14% from the previous quarter. When looking year-over-year, EBITDA maintained consistency with no significant change, signaling stable operational performance.

Miniso's price-to-earnings (P/E) ratio is currently 17.07. This P/E ratio is within a normal range, neither unusually high nor low. A balanced P/E ratio like this one typically indicates that investors believe in the company’s capacity for moderate earnings growth.

Technical Analysis

Today's stock price for Miniso Group is ₹18.59, which represents an increase of 6.78% compared to a month ago. This suggests a positive short-term trend. However, when compared to the stock price a year ago, there has been a decline of 23.34%, which raises some concerns regarding long-term performance.

The trend appears bullish with the current Simple Moving Average (SMA10) standing at ₹17.29, slightly higher than the previous SMA10 of ₹17.16. This minor increase implies a potential upward trend in price movement. The Relative Strength Index (RSI) is currently at 15.9, indicating an oversold condition. This can be interpreted as a bullish signal, suggesting that the stock may be undervalued at the moment and might see positive price adjustments in the near future.

Alternative Data Analysis

Alternative data suggests further insights into Miniso’s performance. Job postings and employee sentiment metrics indicate steady or improving operational activities. Customer acquisition data reveals that Miniso's website has attracted an estimated 1 million visitors, with a significant uptick of 31% in the last few months. This suggests a bullish trend in customer interest and potentially in sales.

Customer engagement metrics are also favorable, as increased online traffic generally translates to higher sales and customer loyalty. Additionally, AltIndex’s AI score, which predicts a company's stock price based on a combination of fundamental, technical, and alternative data, gives Miniso Group a score of 55. This score signals a 'hold,' indicating a cautious outlook despite generally positive trends.

Conclusion and Recommendation

Based on a comprehensive analysis of Miniso Group, the company shows strong fundamental performance with robust revenue and net income growth. Although the stock price has declined year-over-year, short-term trends indicate potential recovery. The stock appears undervalued given the current RSI, and increasing web traffic suggests a positive outlook for customer acquisition and engagement.

Given these factors, the stock is recommended to be held for now. Potential investors should monitor the stock for short-term upward trends and consider entering or increasing positions based on further performance indicators. The AI score of 55 reinforces a cautious stance, advising investors to hold and watch closely for more definitive signs of sustained growth or recovery in stock price.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.