Core Viewpoint - The company's same-store sales are under pressure in 2024 due to external factors such as subdued dining trends and consumer spending, as well as internal adjustments [1][2] Group 1: Same-Store Sales Performance - In 2024, same-store revenue for brands such as Jiumaojiu, Taier, and Songhuoguo is expected to decline by -13%, -19%, and -32% respectively [1] - Jiumaojiu is less affected by the economic downturn due to its lower average transaction value of 55 yuan compared to Taier at 71 yuan and Songhuoguo at 103 yuan [1] Group 2: Operational Adjustments - The company is actively making adjustments to improve operations, including optimizing store models and menu structures [1][2] - Store renovations aim to create a warmer and more stylish environment suitable for family gatherings [1] - The menu is being updated to replace non-core dishes and introduce fresh fish, on-site slaughter, and specialty snacks [1] Group 3: Profitability and Financial Outlook - The company has slowed its expansion strategy in 2024, focusing on store upgrades and closures, which may enhance profitability [2] - The net profit attributable to the parent company for 2024 is projected at 56 million yuan, with core operating profit at 252 million yuan [2] - Profit recovery is anticipated in 2025, with net profits expected to reach 135 million yuan, 164 million yuan, and 203 million yuan for 2025-2027, representing year-on-year growth rates of 142.37%, 20.97%, and 24.05% respectively [2] Group 4: Supply Chain Development - The company is implementing supply chain improvements, with a central kitchen in Nansha, Guangzhou expected to be operational in 2025 [2] - Additional supply chain developments are planned for Shanghai and Chongqing in 2026-2027, which will support accelerated expansion outside the province [2] Group 5: Investment Rating - The company is viewed as being at the bottom of its fundamental performance, with positive adjustments and a potential turning point on the horizon [2] - Earnings per share (EPS) forecasts for 2025-2027 are 0.10, 0.12, and 0.15 yuan, with corresponding price-to-earnings ratios of 23.39x, 19.33x, and 15.59x [2]

Core Insights - Jiumaojiu reported a revenue of approximately 6.074 billion RMB for the year ending December 31, 2024, representing a year-on-year increase of 1.5% [1] - The net profit attributable to the parent company was 55.807 million RMB, a significant decline of 87.69% compared to the previous year [1] - The annual profit decreased by 90.7% from 480 million RMB in 2023 to 44.8 million RMB in 2024 [1] Store Expansion and Closure - In 2024, Jiumaojiu opened 150 new restaurants, including 95 Taier restaurants (11 of which are franchised), 28 Song Hotpot restaurants, 20 Shanwaimen restaurants (16 of which are in a cooperative model), and 7 Jiumaojiu restaurants (1 of which is franchised) [1] - The company closed 69 restaurants in 2024 due to the expiration of lease agreements, underperformance of certain locations, and the sale of restaurants such as "Na Wei Da Shu Shi Da Chu" and "Lai Mei Li" [1] - As of December 31, 2024, Jiumaojiu operates 779 self-operated restaurants and 28 franchised/cooperative restaurants across 141 cities in China, as well as locations in Singapore, Canada, Malaysia, Thailand, the United States, and Indonesia [1] Business Strategy - In 2024, Jiumaojiu continued to follow a multi-brand and multi-concept strategy while exploring new business opportunities to further expand market share [2] - The company actively adjusted its business strategy and expanded its restaurant network, focusing on brands with significant growth potential while cautiously expanding the Taier and Song Hotpot brands [2] - Jiumaojiu launched a new brand, "Shan de Shan Wai Suan Tang Hotpot," in February 2024 and sold several restaurants in the first half of 2024 [2]