China Merchants International: Jiamaojiu faces ongoing operational pressure in the second quarter, maintaining a "Neutral" rating.

On July 23, Jin10 reported that CMB International issued a report indicating that, considering that Jiumaojiu (09922.HK) has weaker operational data for the second quarter of 2025 than the bank's previous expectations and slow same-store recovery, the bank has lowered its revenue and net profit forecasts for 2025-2027. Still based on a forecast price-to-earnings ratio of 19 times for 2026, it has set a target price of HKD 2.79, maintaining a "neutral" rating. The report states that overall operational pressure on the group continues in the second quarter of 2025, with same-store sales still showing a downward trend. The average daily same-store sales for Taier, Song Hotpot, and Jiumaojiu in the second quarter decreased by 13.7%, 14.3%, and 18.5% year-on-year, respectively. The bank sees initial results from the adjustment of the company's core brand Taier, with same-store sales expected to show marginal improvement in the second half of the year.