Ryohin Keikaku "Inspection of mainland China business: Growth still ahead" (Buy)

研报英文原文证据摘录

Ryohin Keikaku "Inspection of mainland China business: Growth still ahead" (Buy)

support, the mainland China business established a local

Analyst

product development department in 2018 and introduced a system to reflect market takahiro.kazahaya@ubs.com

needs and size structures in product planning. Starting in March 2019, the rollout of +81-3-5208 6226

locally developed products began to progress gradually. Alongside this, the company

Kazuki Oike

revised its price range, which helped to improve the balance between value and price.

Associate Analyst

kazuki.oike@ubs.com

Although business performance temporarily deteriorated due to the spread of COVID- +81-3-5208 6964

19, the challenging consumption environment actually led to a renewed appreciation

among consumers for the balance between value and price at MUJI. In addition, efforts

to strengthen local product development since 2018 and the strengthening of

marketing measures—which became full-scale around 2024, with the number of

marketing department staff increasing from about 10 in 2024 to around 45 recently—

have contributed to expansion of the customer base.

In addition, by strengthening store development (through revising the organisational

structure by region and increasing staff), the company has increased opportunities to

open stores in prime locations, and both the quality and the number of stores are being

improved through a process of scrapping and rebuilding existing locations. As for the

sales composition, apparel accounts for about 50%, household goods about 40%, and

Highlights (¥b) 08/23 08/24 08/25 08/26E 08/27E 08/28E 08/29E 08/30E

Revenues 581.4 661.7 784.6 891.0 980.6 1,054.4 1,129.4 1,202.6

Operating profit 33.1 56.1 73.8 89.5 102.1 118.6 131.8 145.5