Nomura: Downgrade JIUMAOJIU (09922) target price to 2.14 Hong Kong dollars, rating lowered to "reduce"

Nomura released a research report stating that it has lowered its target price for JIUMAOJIU (09922) by 7%, from 2.3 Hong Kong dollars to 2.14 Hong Kong dollars, and downgraded its rating from "Buy" to "Hold". Nomura stated that the same-store sales (SSS) of JIUMAOJIU in the fourth quarter of 2024 have declined further, despite a low base. The same-store sales of its two major brands deteriorated by 24.6% and 18.5% year-on-year; the same-store sales of the brand "" decreased by 26.9% year-on-year, mainly due to improvements in the store network. The bank expressed that the company's same-store sales performance was below expectations, mainly due to increasing pressure on table-turn rates, and it is expected that the same-store sales of Taier//JIUMAOJIU in the fourth quarter will further decrease by 23.1%/27%/20%, slightly offset by improvements in average selling price (ASP).