HK Stock Market Move | XIABUXIABU (00520) fell more than 10% in the afternoon, hitting a new low. Institutions say the pressure faced by hot pot chain Xiabu Xiabu is greater than that of other catering brands.

XIABUXIABU (00520) fell more than 10% in the afternoon, hitting a low of HK$0.72, setting a new record low since its listing. As of the time of writing, it fell 10% to HK$0.72, with a turnover of HK$6.856 million. On the news front, on August 16, the Hang Seng Index Company announced the latest quarterly review results, and XIABUXIABU was removed from the Hang Seng Composite Index constituent stocks; on September 10, XIABUXIABU was removed from the Stock Connect program. It is worth noting that as of September 9, 2024, XIABUXIABU's shareholding ratio in the Stock Connect program was approximately 20.62%. Industrial and Commercial Bank of China International pointed out that in the first half of 2024, XIABUXIABU's same-store revenue decreased by 19.0% year-on-year, and CUICUI's revenue decreased significantly by 43.0%. In the first half of 2024, the group opened 41 XIABUXIABU/11 CUICUI restaurants; closed 48 XIABUXIABU/23 CUICUI/7 Charburn restaurants. The bank believes that the group's profitability is facing challenges, with CUICUI facing greater pressure than other restaurant brands. Operations need to be adjusted to turn losses into profits, and store expansion in the short term may be limited.