MNSO (09896) shares fell more than 3%, touching a low of HK$17.75, marking its weakest level since January 2023, with the stock now down 50% year-to-date. At the time of writing, the stock was trading 3.47% lower at HK$17.83, with turnover reaching HK$102 million.

In the first half of this year, MNSO generated revenue of RMB 11.50 billion, up 22.4% year-on-year, while profit rose just 5.6% to RMB 957 million. After excluding foreign exchange impacts, adjusted net profit fell 1.7% to RMB 1.222 billion. For the second quarter alone, revenue grew 17.0% year-on-year to RMB 5.81 billion, but adjusted net profit (excluding FX effects) dropped 10.5% to RMB 590 million.

Beyond currency losses, the company's overseas operations have weakened, with a significant rise in expenses following rapid expansion weighing heavily on profitability. MNSO anticipates full-year adjusted net profit will decline by a high single-digit percentage, with adjusted operating margin expected to contract by 3 to 4 percentage points year-on-year.

BOCI Securities forecasts that earnings pressure will persist through the second half of 2026, as the company enters a phase of operational adjustment, meaning a turning point may not arrive until 2027 at the earliest. The brokerage believes the investment thesis of rapid global expansion translating into earnings growth will take longer to materialize.