Understanding the Market | JIUMAOJIU falls over 7%, hitting a new low since its listing; same-store recovery pace is slow, and major brands' same-store sales remain under pressure in the third quarter

JIUMAOJIU fell over 7% in the afternoon, hitting a low of HKD 1.84, setting a new record low since its listing. As of the time of publication, it was down 7.07%, priced at HKD 1.84, with a trading volume of HKD 22.5014 million. In terms of news, the third-quarter operational data released by JIUMAOJIU showed that same-store sales for its main brands have not yet stopped declining. Among them, the same-store sales of Tai Er Sauerkraut Fish decreased by 9.3% year-on-year, while the declines for Song Hotpot and JIUMAOJIU Northwest Cuisine were even more pronounced, reaching 19.1% and 14.8%, respectively. CMB International pointed out that although same-store sales are still experiencing negative growth, the declines for Tai Er and JIUMAOJIU have narrowed compared to the second quarter, with Tai Er showing improvement for three consecutive quarters, reflecting the initial effectiveness of operational adjustment measures. Guosheng Securities stated that the company is currently adopting a prudent expansion strategy, with its main brands still under pressure, but has clearly defined its "fresh ingredients" strategic positioning. The new store model of Tai Er "5.0 Fresh Model" has performed well and will accelerate its promotion, which is expected to further improve performance