HK Stock Market Move | JIUMAOJIU (09922) fell by more than 2%, with same-store sales in the fourth quarter of last year declining by 24.6% year-on-year.

JIUMAOJIU (09922) fell over 2%, down 2.1% as of the time of publication, at 2.8 Hong Kong dollars, with a turnover of 57 million Hong Kong dollars. On the news front, JIUMAOJIU announced that in the fourth quarter of 2024, the turnover rates for Tai'er (self-operated only), Song Hot Pot, and JIUMAOJIU were 3, 2.7, and 2.4 respectively; the average customer spending was 72 yuan, 99 yuan, and 54 yuan respectively, with same-store daily sales decreasing by 24.6%, 26.9%, and 18.5% respectively compared to the previous year. Morgan Stanley released a research report stating that they have lowered JIUMAOJIU's target price by 39.5%, from 3.8 Hong Kong dollars to 2.3 Hong Kong dollars, and downgraded the rating from "in line with the market" to "hold", mainly due to a 22% cut in profit forecast for 2025. The Morgan Stanley report stated that the main brand of JIUMAOJIU, "Tai'er," had new store closures in the fourth quarter, and therefore it is expected to take some time to optimize the store network and same-store operations. The closure of stores before Lunar New Year indicates challenges in business prospects, and the company's focus is on improving existing operations. Morgan Stanley believes that the "downward cycle" of JIUMAOJIU's store network will continue for some time, as the company is optimizing same-store operations.