1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:The Hongkong and Shanghai Banking Corporation Limited View HSBC Global Investment Research at:https:/ Find o

2、ut moreHSBC12th Annual China ConferenceShenzhen|1-2 September 2025 2Q25 results ahead of guidance,thanks to its fast-footed adjustment to focus on same stores sales growth(SSSG)Improving trend in its SSSG improves earning visibility;we raise our earnings forecasts by 8-12%Maintain Buy rating;raise M

3、NSO US TP to USD27.30(from USD25.10);9896 HK TP to HKD53.30(from HKD49.00)2Q25 result beat guidance:1Q25 was a weak quarter for Miniso as the opening of self-operated stores in its overseas markets dragged its margins.In 2Q25,it slowed the pace of opening self-operated stores overseas and it deliver

4、ed better SSSG across markets.Specifically,SSSG for Miniso China,Miniso overseas,and Top Toy improved to low-single-digit(LSD)growth/LSD decline/LSD growth in 2Q25 respectively from that of mid-single digit(MSD)decline/MSD decline/SD decline in 1Q25.Consequently,its adjusted OP in 2Q25 was up by 8.5

5、%y-o-y on 23.1%growth in revenue.Not only it was an improvement from a 5%y-o-y decline in 1Q25,but it also beat managements guidance for flat growth in adjusted OP in 2Q25.In China,after a quarter of net closure,its franchisees resumed expansion in 2Q25 by opening IP land and flagship stores,which s

6、upports its strategy to sell more IP-based products.Improving earnings visibility:In its post-results call,management expected its SSSG to continue improving and its margins to improve sequentially.Management expects the SSSG for Miniso China,Miniso overseas,and Top Toy to improve to high-single dig