HK Stock Market Move | Jiumaojiu (09922) fell more than 4% at the close, store and operation optimization still need time. Institutions said that there is no sign of industry competition easing.

At the close, JIUMAOJIU (09922) fell more than 4%, down 4.12% to HK$2.79 with a turnover of HK$44.8458 million. On the news front, JIUMAOJIU previously announced that in the fourth quarter of 2024, the daily sales of Taier (self-operated only), Senghuoguo, and JIUMAOJIU stores decreased by 24.6%, 26.9%, and 18.5% respectively compared to the same period last year. Morgan Stanley stated that JIUMAOJIU's main brand "Taier" had new store closures in the fourth quarter, so it is expected that store network and same-store operations will need time for optimization. BOCOM INTL stated that the Taier brand is actively adjusting and is expected to land by the end of March. The company is actively adjusting store styles, strengthening menu design, and food innovation. The bank pointed out that the company's shift from clear opening targets to cautious dynamic adjustment strategies reflects a cautious attitude towards the future, coupled with no signs of easing industry competition, the bank further lowered its financial forecasts to reflect cautious expectations. It maintains a "Neutral" rating with a target price lowered from HK$2.59 to HK$2.56.