HK Stock Price Fluctuated | JIUMAOJIU (09922) fell by over 5%, creating a new 3-and-a-half-year low for the stock. The recovery of same-store sales slowed down in the first half of the year.

JIUMAOJIU (09922) fell more than 5% again, reaching a new low of HKD 10.02 since April 2020. As of the time of writing, it had fallen 4.9% to HKD 10.1 with a turnover of HKD 53.09 million. Zheshang pointed out that since the beginning of the year, the trend of cost-effectiveness reform has emerged, and the average customer price of various catering services has decreased. The per customer price of Qiuhuo Hotpot/Taier has decreased by 8%/4% respectively compared to the same period in 2023H1. The bank believes that the proactive price reduction by catering brands is mainly due to the increasing sensitivity of consumers to prices. In order for catering brands to achieve better profitability while exploring lower prices, it depends on the endorsement of brand strength on one hand, and the degree of optimization and sustainability of store models on the other hand. HSBC research previously reported that JIUMAOJIU's first-half revenue lagged behind market expectations, and investors were concerned about the slowdown in same-store sales recovery pace. The restaurant's profit margin has returned to 20%, similar to the level in 2019. Among them, the "Taier" brand, which accounts for 76% of the revenue, has expanded in line with management's targets, but the sales capacity of each restaurant has lagged behind expectations, affecting the improvement of profit margin. In addition, the company has expanded into new brands, resulting in an overall increase in operating costs, so the company's profit expectations have been lowered.