Core Viewpoint - Huaxing Securities maintains a "Hold" rating and profit forecast for Jiumaojiu (09922), lowering the target price by 29% to HKD 1.77, corresponding to a 12x P/E for 2026, due to a stable third-quarter operation and adjustments in major brands, with same-store sales declining year-on-year [1] Group 1: Third Quarter Performance - The company reported stable operations in Q3 2025, with a total of 530 Taier restaurants, 509 of which are self-operated; 71 for Song Hotpot; and 64 for Jiumaojiu, with 63 self-operated [1] - Taier's self-operated restaurants in mainland China have a table turnover rate of 3.2 times per day, while other regions have 3.9 times; Song Hotpot has 2.4 times, and Jiumaojiu self-operated restaurants have 2.5 times [1] - The average customer spending for Taier's self-operated restaurants is RMB 66 in mainland China and RMB 155 in other regions; Song Hotpot is RMB 100, and Jiumaojiu is RMB 58 [1] - Same-store daily sales for Taier's self-operated restaurants decreased by 9.3% year-on-year; Song Hotpot by 19.1%; and Jiumaojiu by 14.8% [1] Group 2: Future Expectations - For Q4, all brand stores are expected to adjust smoothly, with Taier's same-store revenue decline narrowing further in Q3 2025, approaching flat growth by early September [2] - The impact of the Xibei prepared food incident on customer traffic in shopping center dining areas lasted nearly a month, but the effect has weakened post-National Day, with expectations for Taier's same-store revenue growth to turn positive by year-end [2] - Taier is actively adjusting its store model by adding live fish preparation, which has not significantly affected service standardization; however, raw material costs may slightly increase due to higher waste rates [2] - The company plans to adjust over 200 Taier stores this year and continue with the remaining 300 next year [2] Group 3: Industry Trends - Jiumaojiu and Song Hotpot show similar trends in same-store revenue performance, with the company aiming to improve results through new model stores [3] - The restaurant industry is undergoing a transformation phase with upgraded consumer demands, requiring brands to enhance their offerings in terms of environment, space, products, pricing, service, and promotions [3] - The company is proactively adjusting to meet these demands, which may impact short-term financials but lays a foundation for sustainable future growth [3]

Group 1 - The core viewpoint of the news is that Jiumaojiu International Holdings Limited reported a slight increase in revenue for the fiscal year 2024, but a significant decline in net profit, indicating challenges in profitability despite revenue growth [1][2] Group 2 - For the fiscal year 2024, Jiumaojiu's revenue was approximately 6.074 billion yuan, representing a year-on-year increase of 1.5% [1] - The net profit attributable to the parent company was 55.807 million yuan, a decrease of 87.69% compared to the previous year [1] - The annual profit dropped from 480 million yuan in 2023 to 44.8 million yuan in 2024, a decline of 90.7% [1] Group 3 - In 2024, Jiumaojiu opened 150 new restaurants, including 95 Taier restaurants, 28 Song Hotpot restaurants, 20 Shanwaimen restaurants, and 7 Jiumaojiu restaurants [1] - The company closed 69 restaurants in 2024 due to lease terminations, underperformance, and sales to third parties [1] - As of December 31, 2024, Jiumaojiu operated 779 self-operated restaurants and 28 franchised or cooperative restaurants across various countries [1] Group 4 - Jiumaojiu continues to follow a multi-brand and multi-concept strategy to explore new business opportunities and expand market share [2] - The company is adjusting its business strategy and expanding its restaurant network while optimizing its brand portfolio [2] - A general dividend of 0.02 HKD per share is scheduled for distribution on July 4, 2025 [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]