Core Viewpoint - Jiumaojiu (09922) experienced a decline of over 4% in early trading, with a current drop of 3.77% to HKD 2.81, amid ongoing operational pressures and upcoming mid-term performance review [1] Group 1: Company Performance - As of June 30, Jiumaojiu operated a total of 729 restaurants, categorized by brand [1] - In Q2 2025, same-store daily sales for Taier (self-operated only) decreased by 13.7%, Song Hotpot by 14.3%, and Jiumaojiu by 18.5% [1] - Despite the decline in same-store sales, the year-on-year drop for Taier narrowed from 21.2% in Q1 to 13.7% in Q2, indicating initial effectiveness of operational adjustments [1] Group 2: Pricing and Revenue Quality - In Q2, the average transaction value for Taier (Mainland China) and Jiumaojiu increased by 1.5% and 1.8% respectively, while Song Hotpot saw a decrease of 2.0% [1] - The company is stabilizing average transaction value through menu optimization, which is expected to enhance overall revenue quality despite ongoing challenges in customer traffic recovery [1]

Group 1 - The overall operational pressure in Q2 continues, with same-store sales showing a downward trend. The average daily sales for the company's core brands, including Tai Er, Song Hotpot, and Jiu Mao Jiu, decreased by 13.7%, 14.3%, and 18.5% year-on-year respectively, indicating a competitive environment in the restaurant industry [1][2] - Despite the pressure on same-store performance, the decline in same-store sales for Tai Er has narrowed from 21.2% in Q1 to 13.7% in Q2, showing signs of operational adjustments taking effect. The average transaction value for Tai Er and Jiu Mao Jiu increased by 1.5% and 1.8% respectively, while Song Hotpot saw a decrease of 2.0% [2] - The company has adjusted its revenue and profit forecasts for 2025-27, projecting revenue between 5.61 billion to 6.34 billion RMB and net profit between 150 million to 300 million RMB, reflecting a reduction of approximately 12-31% [3] Group 2 - The company has reduced its total number of stores to 729, with a net decrease of 51 stores in Q2, primarily due to structural adjustments of inefficient locations. Tai Er has implemented a new model for 57 of its restaurants, which is expected to enhance operational performance in the second half of the year [2] - The target price has been adjusted to 2.79 HKD, maintaining a neutral rating based on a projected price-to-earnings ratio of 19 times, rolling to the 2026 forecast earnings per share [3]