HK Stock Market Move | Jiumaojiu (09922) is now up nearly 5%, it is expected that the net profit for the whole year will significantly shrink. Institutions say that the company's fundamentals are against the wind, but the valuation is extremely low.

JIUMAOJIU (09922) has risen nearly 5%, with a 5.19% increase at the time of publication, at 3.24 Hong Kong dollars, with a turnover of 1.2 billion Hong Kong dollars. On the news front, JIUMAOJIU announced that it expects revenue of 6.073 billion yuan in 2024, compared to 5.986 billion yuan in the same period last year; net profit of 50 million yuan, compared to 453.5 million yuan in the same period last year. It is worth noting that JIUMAOJIU had a revenue of 3.064 billion yuan and a net profit of 72.29 million yuan in the first half, indicating a loss in the second half. The board of directors pointed out that the profit decline is mainly due to intensified competition in the catering market, the closure of some restaurants, poor performance leading to one-time losses, as well as reduced government subsidies and other income. GuoZheng International pointed out that JIUMAOJIU is currently facing headwinds in terms of fundamentals, but valuations are already at very low levels. The bank believes that Tai Er has a relatively wide reputation nationwide, and hotpot and Jiumaojiu's Northwest cuisine have also established a certain brand influence, which is the company's foundation. Against the backdrop of a reversal in market sentiment, companies with weak performance and low valuations have greater elasticity in their stock prices. It is recommended to consider positioning JIUMAOJIU as a second-tier leading stock.