Shares of MINISO Group Holding Limited (NYSE: MNSO) surged 8.66% on Monday, adding to the 28% rally the stock has seen over the past month as it recovers from prior weakness. Despite the impressive gains, the market still seems unconvinced about the company's growth prospects, as reflected in its relatively modest price-to-earnings (P/E) ratio.

Currently trading at a P/E of 19.9x, MINISO's valuation appears "middle-of-the-road" compared to the broader U.S. market, where the median P/E ratio is around 18x. This lukewarm valuation comes despite the company's strong earnings performance, with MINISO posting 108% bottom-line growth over the past year even as overall market earnings have declined.

Looking ahead, analysts expect MINISO's earnings per share to climb by an impressive 21% annually over the next three years, outpacing the market's projected 10% growth rate. However, the market seems skeptical of these rosy forecasts, with the company's share price failing to reflect the anticipated earnings growth.