JIUMAOJIU (09922) saw a decline of nearly 4%, dropping 3.83% to HKD 2.01 with a trading volume of HKD 12.24 million at the time of this report. Recently, JIUMAOJIU announced that in the third quarter of 2025, the table turnover rates for its brands, including Tai Er (self-operated only), Song Hot Pot, and JIUMAOJIU (self-operated only), were 3.3, 2.4, and 2.5, respectively. The same-store average daily sales decreased year-on-year by 9.3%, 19.1%, and 14.8% respectively. Additionally, as of the announcement date, there were 106 restaurants operating under the "5.0 Fresh and Active Model" in mainland China. The new model has received positive feedback since its launch, and the group expects the number of new model restaurants to exceed 200 by the end of 2025. According to CMB International, same-store sales remain under pressure in Q3, but initial signs of recovery are emerging. Despite the negative growth, both Tai Er and JIUMAOJIU saw a narrower decline compared to Q2, with Tai Er improving for three consecutive quarters, reflecting the initial effectiveness of operational adjustments. The company stated that same-store sales for Tai Er in cities like Beijing and Shanghai achieved year-on-year positive growth in Q3, marking a short-term highlight. Considering the slow pace of same-store recovery, the firm has slightly downgraded its earnings forecasts for 2025-2027, with the target price reduced to HKD 2.32 and a neutral rating maintained.
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