According to the Finance app of Wisdom Capital, Jiumaojiu (09922) continued to fall by more than 3%, with stock prices down 20% over the four trading days. As of press time, it fell 3.42%, reporting HKD 2.82, with a turnover of HKD 16.918 million.

Recently, Jiumaojiu issued a profit warning, expecting a profit of no less than 67 million RMB in the first half of this year, a year-on-year decline of no more than 69.8%. The decline in excess profits is mainly due to the relatively high comparable base during the period. The average customer consumption and table turnover both decreased, resulting in a decrease in single-store revenue for restaurants, etc. Looking to the future, the company stated that it will adopt a more cautious restaurant network expansion strategy and adjust its expansion target for Hot Pot to 25 new Hot Pot restaurants by 2024. This target was set at 35-40 in its 2023 annual report released in April of this year.

Goldman Sachs research reports stated that it lowered the target price of Jiumaojiu from HKD 6.2 to HKD 3.8, and lowered its profit forecast for the years 2024 to 2026 by 37% to 55%, to reflect its poor performance in the first half of this year, and the likely continued pressure on same-store sales growth in a challenging market. However, with the efforts of management in promotion control, cost savings and resource concentration on major brands, the bank expects Jiumaojiu's gross profit to continue to improve in the second half of this year and next year.