JIUMAOJIU (09922) fell more than 5% during the morning session. As of the time of writing, the stock was down 4.85%, trading at HK$2.16, with a turnover of HK$10.193 million. The decline follows a recent announcement from JIUMAOJIU regarding its fourth-quarter 2025 performance, which indicated stable and improving operations for the group's primary brands. Notably, the Tai Er brand achieved positive year-on-year growth in average daily same-store sales in mainland China, signaling that the effects of earlier operational adjustments and store model upgrades are becoming more apparent. During the period, stores operating under the "Fresh Live" model performed exceptionally well, providing strong support for the overall operational recovery of the Tai Er brand. Bank of Communications International released a research report forecasting that JIUMAOJIU's full-year 2025 revenue will decrease by 14% year-on-year, citing that while the year-on-year decline in same-store sales for the Tai Er brand has narrowed quarter by quarter, a net reduction in store count will continue to drag on the overall sales scale. The report also noted that the JIUMAOJIU and Song brands are still expected to see mid-to-high double-digit year-on-year declines in same-store sales in the second half of the year. Due to the impact of negative operating leverage, costs associated with store closures, and renovations, the institution has revised down its net profit forecast for 2025 to 87.67 million yuan. The majority of the effects from the store adjustments are anticipated to be reflected in 2025, with the company expected to achieve an earnings recovery in 2026.
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