HK Stock Market Move | JIUMAOJIU (09922) falls by more than 3% again, with both revenue and profits decreasing in the first half of the year and being removed from the Hang Seng Composite Index.

JIUMAOJIU (09922) fell more than 3%, as of the time of publication, it fell 3.33% to HK$2.61 with a turnover of HK$57.15 million. In terms of news, JIUMAOJIU recently announced its mid-term performance for 2025, with revenue of RMB 2.753 billion, a 10.1% decrease year-on-year; the net profit attributable to equity shareholders of the company was RMB 60.691 million, a 16% decrease year-on-year. Looking at same-store sales data, the same-store sales growth rates of the three major brands, Tai Er, Song Hot Pot, and JIUMAOJIU were -19.0%, -20.1%, and -19.8% respectively. It is worth noting that in the first half of this year, the company closed 88 stores, mainly due to the termination of related lease agreements upon expiration and the performance of some restaurants not meeting expectations. Morgan Stanley lowered JIUMAOJIU's earnings per share forecast for 2025 to 2027 by 9%, 6%, and 10% respectively, mainly reflecting weaker-than-expected demand from the beginning of the year. Based on the lowered earnings forecast, the target price was reduced from HK$2.3 to HK$2.1, with a "Underweight" rating. The bank also expects the company's stock price to decline in the next 30 days, as the Hang Seng Index recently announced that JIUMAOJIU will be removed from the Hang Seng Composite Index starting from September 8, meaning the stock will be removed from the Hong Kong Stock Connect. As of August 22, the southbound capital held 311.7 million shares, accounting for 22.3% of the total share capital and 44.4% of the free float, and it is expected that the adjustment will trigger significant selling pressure in the short term.