Walter Woo, an analyst from CMB International Securities, maintained the Hold rating on Jiumaojiu International Holdings Ltd. (9922 – Research Report). The associated price target was raised to HK$2.99.
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Walter Woo’s rating is based on several factors that suggest a cautious approach towards Jiumaojiu International Holdings Ltd. The company’s same-store sales (SSS) showed improvement in the second quarter of 2025, narrowing the decline from the previous quarter. However, this recovery aligns with market expectations, and the key concern remains whether this positive trend can be sustained into the second half of 2025 and beyond. The company’s efforts in upgrading store formats have shown promising results, with increased customer traffic and improved table turnover rates, particularly in larger stores.
Despite these positive developments, the transformation process requires significant capital expenditure and time, especially for larger stores, which could impact short-term financial performance. Additionally, while the management has implemented reforms to stabilize average selling prices, the overall improvement in sales is primarily volume-driven. This indicates that while progress is being made, the full benefits of the reforms may take more time to materialize, justifying the Hold rating as the company continues to navigate these changes.
Woo covers the Consumer Cyclical sector, focusing on stocks such as Li Ning Company, ANTA Sports Products, and Xtep International Holdings. According to TipRanks, Woo has an average return of 1.7% and a 58.25% success rate on recommended stocks.