HK Stock Market Move | Jiumaojiu (09922) falls nearly 6% to a new low as Sum Ho Gulou exits the Wuhan market. Institutions say the company still faces challenges in the medium to short term outlook.

JIUMAOJIU (09922) fell by nearly 6%, hitting a new low of HK$2.15. As of the time of writing, it was down by 4.82% at HK$2.17, with a turnover of HK$6.2667 million. On the news front, the SENG Hotpot brand under JIUMAOJIU catering group announced its withdrawal from the Wuhan market. The group stated that the decision to exit the Wuhan market was made after a comprehensive evaluation of the market environment, operating costs, and customer demands. It is worth noting that in the past five and a half years, four brands incubated by JIUMAOJIU, including "2 Chicken Eggs Pancakes," "Uncle Na Is a Chef," "Seng Cold Pot Skewers," and "Lai Meili," have all failed. BOCOM INTL released a report stating that JIUMAOJIU's performance in the first half of the year was under pressure, and the expansion of new stores did not improve overall performance. Although the number of Taier restaurants increased by 23% in one year, the increase brought by new outlets was partially offset by a decrease in turnover rate and per capita consumption. BOCOM INTL believes that the company's downward adjustment of store opening guidance reflects a cautious attitude towards the future market environment, coupled with no easing of market price competition, therefore, the company's short-term and medium-term prospects still face challenges.