MINISO Group Holding Ltd. (MNSO) saw its stock climb about 6% on Monday after the lifestyle retailer announced a new share repurchase program worth up to 2 billion Hong Kong dollars. The move signals management's confidence in the company's long-term growth prospects.

MINISO Approves New Buyback Program

MINISO's board approved the 2026 share repurchase program on Monday. The plan authorizes the company to repurchase up to 2 billion Hong Kong dollars of ordinary shares and American depositary shares over the 12 months beginning June 30, 2026. The company said it will fund the purchases with surplus cash.

The new authorization follows the near completion of MINISO's previous buyback plan. Under its extended 2024 share repurchase program, the company repurchased about 1.37 billion Hong Kong dollars of ordinary shares and American depositary shares.

The board said it has "full confidence" in MINISO's business outlook. It also believes the company's current share price is below its intrinsic value. The company said the program supports shareholder interests while allowing it to continue investing in business expansion and delivering stable, predictable shareholder returns.

Repurchases Depend On Market Conditions

MINISO said it may repurchase shares through open-market purchases, privately negotiated transactions, block trades or other legally permitted methods, depending on market conditions and regulatory requirements.

The company will carry out the buybacks under shareholder-approved repurchase mandates. It also said the program is structured to avoid triggering a mandatory general offer under Rule 26 of the Hong Kong Code on Share Buybacks.

Repurchased shares may be canceled or held as treasury shares, depending on market conditions and the company's capital management strategy. The board added that MINISO's financial position is strong enough to complete the program without materially affecting its working capital.

However, the company said the timing, size, and price of any repurchases remain at the board's discretion. Those decisions will depend on market conditions, and there is no guarantee that repurchases will occur at any specific time, volume, or price.

MNSO Stock Rises After Buyback Announcement

MNSO Stock Price Activity: MINISO Group Holding shares were up 5.83% at $12.07 at the time of publication on Monday, according to market data.