Morgan Stanley downgrades JIUMAOJIU (09922) to "underweight" with a target price of HK$2.3.

Morgan Stanley issued a research report stating that JIUMAOJIU (09922) is rated as "reduce" due to not seeing a turnaround and considering slow macroeconomic recovery. They believe that its stock price will be under pressure for the long term, with a target price of 2.3 Hong Kong dollars for now. The bank believes that JIUMAOJIU's stock price will decline relative to its peers in the next 60 days, with a probability of this happening about seventy to eighty percent. JIUMAOJIU's main brand, Tai Er, saw store closures in the fourth quarter due to weak turnover rates. Morgan Stanley expects that it will take some time to optimize the store network and same-store operations. Meanwhile, JIUMAOJIU stated in its latest conference call that it will maintain flexibility in opening and closing stores, without providing specific guidance.