HK Stock Market Move | MNSO (09896) rose nearly 6%, Goldman Sachs pointed out that its core business prospects are not affected by investments in Yonghui Superstores.

MNSO (09896) rose nearly 6%. As of press time, it rose 5.79%, to 26.5 Hong Kong dollars, with a turnover of 6.69 billion Hong Kong dollars. On the news front, MNSO announced on the evening of September 23 that it plans to acquire 29.4% of Yonghui Superstores' equity for 6.3 billion yuan, including 21.1% of the shares held by Yonghui Superstores' original shareholder Milk Company and 8.3% held by JD.com. At the MNSO investment meeting, MNSO stated that it is expected to become the largest shareholder of Yonghui Superstores after the investment, but will not control the majority of the seats on the board of directors, so it will not merge financial statements, but will account for this investment using the equity method. Goldman Sachs released a research report pointing out that the price of MNSO H shares fell by 24% after the relevant news was announced, reflecting market concerns about MNSO's capital allocation, profit risks, and other aspects. The bank believes that if Yonghui Superstores can successfully turn losses into profits, it will increase MNSO's earnings and shareholder return on equity, but the company's short-term shareholder return on equity may be diluted. In addition, the bank believes that MNSO has attractive risk-return characteristics, especially with the upcoming US peak season and the launch of important intellectual property (IP) in October, both of which are positive catalysts.