Jiumaojiu (09922.HK) issued a profit warning last Friday (19th), and it is expected that the company's net profit for the first half of the year as of the end of June will decrease by no more than 69.8% over the year to 67 million yuan. Morgan Stanley's report pointed out that the company's stock price may be under pressure in the short term and prefers Haidilao (06862.HK) more than Jiumaojiu.
According to Deutsche Bank, we expect the company's management to propose any remedial strategies at today's (22nd) morning conference call, and Jiumaojiu's performance reflects better execution and resilience than its industry counterpart Haidilao.
The bank's target price for jiumaojiu is 5.5 yuan, maintaining a 'synchronized with the market' rating.