MINISO Group Is Down 54% Even Though Sales Rose

If you only glanced at MINISO Group’s headlines this year, the picture looked encouraging. Revenue in Q2 2026 was higher than a year earlier, even as net income swung from profit to loss. Holding MINISO Group over the past year would have meant a 53.6% loss, including dividends. If you were weighing an investment back on 28 October 2025, what clues were already on the table that such a harsh outcome was possible?

On Simply Wall St, a Narrative is an investor's thesis written down: the reasoning, plus the numbers it rests on. Run those numbers and you get an estimated Fair Value.

If the move has made MINISO Group harder to judge, start where the gap is still open and scan 26 high quality undervalued stocks.

The Two Stories Investors Had To Weigh On MINISO Group

The shares cost US$21.59 at the start of the period, and any investor in MINISO Group then had to choose which story felt closer to reality.

On the bullish side, the narrative argued for a fair value of US$26.6, built on international expansion and flagship upgrades that were expected to support higher margins and operating leverage.

The bearish view pointed to a fair value of US$16.5, stressing the risk that rising e-commerce and higher logistics and labor costs could pressure store traffic, compress margins, and make earnings more volatile.

What The Results Did To The MINISO Group Story

For MINISO Group, the clearest new fact was Q2 2026 turning into a loss of CNY 289.186 million, even with revenue at CNY 5,810.513 million. Net margin moved from 9.9% in Q2 2025 to a 5.0% loss. As a result, the profitability part of the bullish thesis took a direct hit, while the cautious case on rising costs found backing. Overall, the evidence cut both ways.

The lesson is simple. When a thesis leans on margin expansion, it is important to track net margin each reporting period and see whether higher sales are actually turning into lasting profit, not just higher revenue lines.

What The Current MINISO Group Price Already Assumes

MINISO Group now trades at US$9.75. The selected bullish Narrative sees Fair Value above that quote, based on store rollouts, larger formats, and branded collaborations feeding a wider product mix.

For that higher Fair Value to be reached, a buyer today would be assuming sustained execution on rapid global store expansion at attractive unit economics.

"MINISO has several key growth drivers that could meaningfully impact sales and earnings: Global Store Network Expansion: The primary catalyst is the aggressive and ongoing expansion of its store network, both in China and, more significantly, in overseas markets. In the first quarter of the 2025 fiscal year, MINISO opened 125 new stores, with 88 of those in overseas markets."

One Narrative disagrees with today's price. → See where this Narrative says MINISO Group should trade

Before The Next Story Makes Headlines

Passing on this one could have spared you a loss. Where might you find the opposite surprise? Start looking for companies whose prices leave room for a better outcome than investors expect. These three trade below our estimated value.

• Company 1 - 37% below our estimate - helps clients tackle complex AI related technical, safety, and regulatory investigations across disciplines.
• Company 2 - 43% below our estimate - converts a record backlog of technology heavy projects into high utilization construction and service work.
• Company 3 - 23% below our estimate - embeds AI tools across productivity, cloud and developer platforms to deepen recurring software usage.

Those are three of them. See every one of the 24 solid balance sheet companies →

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