Alibaba and JD.com may be the emperors of Chinese retail, but fellow China retailer Miniso is maximizing growth. And as other discount retailers like Ollie's Bargain Outlet and Five Below head into the holiday sales season, Miniso stock aims to cash in on a new base after rising as much as 568% from its October 2022 low.
A quick glance at the weekly stock charts for JD and BABA shows how both these Chinese large caps have struggled in recent years. By contrast, Miniso has delivered impressive gains from Investor's Business Daily, with its relative strength line earning the prestigious blue dot in MarketSmith to show market leadership.
Miniso's performance also has landed it a spot on the IBD 50 and the IBD Breakout Stocks Index.
While Miniso did not join OLLI stock on the latest list of new buys by the best mutual funds, Miniso has shown clear signs of institutional demand. The stock sports an A Accumulation/Distribution Rating and a 1.2 up/down volume ratio.
Making it one of the top China stocks to watch, Miniso outpaces all of its fellow discounters with a stellar 97 Composite Rating. Alibaba rates a score of 77, while JD stock merits a lowly 47.
See Who Joins Miniso On The IBD Breakout Stocks Index
Miniso Posts 131% Earnings Growth And Accelerating Sales
Since opening its first location in China in 2013, Miniso now has a global footprint, operating over 5,200 stores across more than 80 countries. The retailer offers a variety of trendy lifestyle products primarily through its worldwide network of Miniso stores.
On Aug. 22, the company reported fourth-quarter and full-year results for fiscal 2023, which ended June 30. Miniso continued its streak of accelerating sales growth, generating revenue of $448.4 million, which marked a 30% increase over the prior-year quarter.
Building on 290% earnings growth in fiscal Q3, the retailer posted earnings of 25 cents a share, a 131% year-over-year gain.
Miniso also now pays a dividend, yielding 1.5% on an annualized basis.
Miniso is on tap to report fiscal Q1 earnings on Nov. 15. Alibaba reports on Nov. 3, while JD.com is on tap for Nov. 17.
Miniso Stock Tests Support As China's Economy Slows
As factory orders shrank again and construction activity slowed, China's economy suffered another setback Tuesday. The news also appeared to hit Miniso stock, which fell more than 5%. Volume came in below average, but was higher than the day before and the stock closed below its 50-day moving average and its 21-day line.
Miniso's second-stage consolidation and 29.92 buy point remain intact, but upcoming earnings and the current market correction call for caution.
As OLLI stock sets up and JD and BABA stock continue their slump, see if Miniso can hold support and build on its already-impressive run.
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