＜Research＞Nomura Downgrades JIUMAOJIU (09922.HK) to Neutral, Chops TP to $3.2

　　Nomura highlighted in a research report the weak sales trend of JIUMAOJIU (09922.HK) -0.110 (-3.595%) Short selling $34.87M; Ratio 22.262% . The same-store sales growth of Tai Er, Song Hot Pot and Jiu Mao Jiu brands further deteriorated since 1Q24, crumpling 18.1%, 36.6% and 12.6% YoY respectively, while the table turnover rates and average selling prices of these brands also declined due to the group's more frequent promotions and the launch of lower-priced products.

　　The broker also pointed out that due to soft same-store sales growth in 2Q24 and growing concerns over operational leverage, JIUMAOJIU has scaled back its shop opening plan for Song Hot Pot from 35-40 to 25, while maintaining its shop opening target for Tai Er. The broker believes Tai Er's declining brand appeal and intensified competition in the mass market will continue to weigh on the brand's sales in 2H24.

　　Nomura downgraded its rating on JIUMAOJIU Neutral and slashed its target price to $3.2 from $8.7, while also chopping its profit forecast for 2024 to 2026 by 37% to 51%.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-22 16:25.)

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