Jiumaojiu International Holdings Ltd. (9922) AI Stock Analysis

• Market Cap: HK$4.14B
• Dividend Yield: 0.68%
• Average Volume (3M): 35.32M
• Price to Earnings (P/E): 69.5
• Beta (1Y): 2.13
• Revenue Growth: -0.41%
• EPS Growth: -87.88%
• Country: HK
• Employees: 20,735
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Restaurants
• EPS (TTM): -0.01
• Shares Outstanding: 1,397,633,700
• 10 Day Avg. Volume: 39,031,466
• 30 Day Avg. Volume: 35,320,272
• PEG Ratio: -0.80
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$2.67
• Price Target Upside: -9.80% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: HK$3.00 ▲(1.35%Upside)

The overall stock score is primarily impacted by financial performance challenges, with declining profit margins and negative cash flow posing risks. Technical analysis shows moderate momentum, while a high P/E ratio suggests overvaluation. The attractive dividend yield provides a partial offset.

Positive Factors

Sales Growth

Tai Er brand's store revamps resulted in a significant boost in same-store sales, with a 30% increase reported after upgrades.

Store Upgrades

Positive progress was made in the transformation, with store format upgrades emphasizing fresh ingredients, leading to encouraging traffic and table turns.

Negative Factors

Future Margins

Expectations of low margins in FY25E due to the SSS drop and potential impairments.

Stock Valuation

The trading of the stock at 17x FY26E P/E is not considered attractive.

Jiumaojiu International Holdings Ltd. Business Overview & Revenue Model

Company Description

Jiumaojiu International Holdings Limited operates as a Chinese cuisine restaurant brand manager and operator in the People's Republic of China. As of December 31, 2021 it operated 453 restaurants and managed 17 franchised restaurants covering 85 cities in People's Republic of China, one in Canada, and one in Singapore under the Jiu Mao Jiu, Tai Er, Double Eggs, Song, and Uncle Chef brands. Jiumaojiu International Holdings Limited was founded in 1995 and is headquartered in Guangzhou, the People's Republic of China.

How the Company Makes Money

Jiumaojiu International Holdings Ltd. generates revenue primarily through its chain of restaurants operating under multiple brand names. The company earns money by serving food and beverages to customers in its restaurants, with the bulk of its income derived from the sale of meals and drinks. Revenue is influenced by the number of locations, customer foot traffic, and the average spend per customer. The company also benefits from strategic locations, brand loyalty, and an effective marketing strategy that attracts repeat business. Additionally, Jiumaojiu's business model may include franchise operations, thereby generating franchise fees and royalties, which contribute to its revenue streams. The company's partnerships with suppliers help to manage costs and maintain quality, further enhancing profitability.

Jiumaojiu International Holdings Ltd. Financial Statement Overview

Summary

Despite revenue growth, the company faces challenges in profitability and cash flow. Declining profit margins and a significant drop in cash flow highlight concerns about financial stability. The balance sheet is stable but shows increased financial leverage.

Income Statement

The company's revenue has shown a steady growth trajectory over the years, with a notable increase from 2022 to 2023. However, the gross profit margin has declined from 54.2% in 2023 to 27.1% in 2024, indicating increasing cost pressures. The net profit margin also decreased significantly from 7.6% in 2023 to 0.9% in 2024, which is concerning for profitability. EBIT and EBITDA margins have also seen considerable declines, reflecting operational inefficiencies.

Balance Sheet

The company's financial leverage has increased, with a debt-to-equity ratio rising from 0.7 in 2023 to 0.8 in 2024, indicating higher reliance on debt. The equity ratio remained stable at around 48%, showing a balanced capital structure. Return on equity dropped significantly from 13.6% in 2023 to 1.8% in 2024, highlighting reduced shareholder returns.

Cash Flow

The cash flow position has weakened, with operating cash flow dropping to zero in 2024. Free cash flow growth is negative, indicating potential liquidity challenges. The lack of operating and free cash flow in 2024 raises concerns about the company's ability to fund operations and growth without external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.07B	5.99B	4.01B	4.18B	2.71B
Gross Profit	2.19B	3.24B	1.12B	1.30B	722.74M
EBITDA	545.94M	1.45B	768.72M	1.08B	597.44M
Net Income	55.81M	453.46M	49.28M	339.94M	124.06M
Balance Sheet
Total Assets	6.49B	6.52B	5.41B	5.14B	4.81B
Cash, Cash Equivalents and Short-Term Investments	1.12B	1.80B	1.95B	2.08B	2.52B
Total Debt	2.56B	2.33B	1.68B	1.50B	1.33B
Total Liabilities	3.34B	3.16B	2.21B	2.00B	1.75B
Stockholders Equity	3.15B	3.34B	3.17B	3.08B	3.02B
Cash Flow
Free Cash Flow	435.11M	345.14M	314.18M	519.90M	290.49M
Operating Cash Flow	975.98M	1.01B	684.24M	856.18M	570.95M
Investing Cash Flow	-797.77M	-150.19M	-587.69M	-490.43M	-1.08B
Financing Cash Flow	-904.70M	-646.41M	-480.85M	-788.59M	2.37B

Jiumaojiu International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9922, the sentiment is Positive. The current price of 2.96 is above the 20-day moving average (MA) of 2.90, above the 50-day MA of 2.66, and below the 200-day MA of 2.98, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 36.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9922.

Jiumaojiu International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2217	74 Outperform	HK$2.11B	26.39	5.40%	4.62%	1.63%	-47.80%
0341	69 Neutral	HK$4.32B	18.61	8.26%	7.67%	2.29%	35.94%
6811	64 Neutral	HK$922.85M	15.22	6.54%	5.72%	2.49%	-33.12%
9922	63 Neutral	HK$4.14B	69.48	1.72%	0.68%	-0.41%	-87.88%
Sector *	62 Neutral	$17.27B	9.93	-8.46%	3.20%	1.63%	-26.06%
0538	60 Neutral	HK$982.38M	19.75	-0.69%	7.11%	-7.18%	-110.84%
1443	58 Neutral	HK$84.50M	10.67	-41.01%	5.00%	1.74%	-46.43%

Jiumaojiu International Holdings Ltd. Corporate Events

Jiumaojiu International Announces Change in Share Registrar

Jiumaojiu International Holdings Limited has announced a change in its Hong Kong share registrar and transfer office, effective August 1, 2025. The new registrar will be Tricor Investor Services Limited, and all applications for registration and transfer of shares should be directed to them from this date. This change is part of the company’s operational updates and may influence the administrative processes for shareholders.

The most recent analyst rating on (HK:9922) stock is a Hold with a HK$2.60 price target. To see the full list of analyst forecasts on Jiumaojiu International Holdings Ltd. stock, see the HK:9922 Stock Forecast page.

Jiumaojiu Reports Stabilizing Sales Amid Strategic Upgrades

Jiumaojiu International Holdings Ltd. reported a year-on-year decline in same store average daily sales for the second quarter of 2025, attributed to external consumption pressures. However, the decline in sales for Tai Er and Song Hot Pot showed signs of stabilization, with Tai Er launching 57 new-model restaurants as part of a strategic upgrade. The company is optimistic about the positive effects of these changes in the second half of the year, with stable average spending per customer indicating the success of their strategic shift towards enhancing product quality and customer experience.

The most recent analyst rating on (HK:9922) stock is a Hold with a HK$2.90 price target. To see the full list of analyst forecasts on Jiumaojiu International Holdings Ltd. stock, see the HK:9922 Stock Forecast page.

Jiumaojiu Announces HK$200 Million Share Repurchase Plan

Jiumaojiu International Holdings Limited has announced its intention to conduct an on-market share repurchase, utilizing its existing cash reserves to repurchase shares worth up to HK$200 million. The decision, made under a general mandate approved by shareholders, allows the company to repurchase up to 10% of its issued shares, excluding treasury shares, subject to market conditions. This move is in compliance with relevant laws and regulations, and the company has no intention of triggering a mandatory offer or reducing the public float below regulatory requirements. The repurchase is at the discretion of the board, with no assurance on timing, quantity, or price.

The most recent analyst rating on (HK:9922) stock is a Hold with a HK$3.40 price target. To see the full list of analyst forecasts on Jiumaojiu International Holdings Ltd. stock, see the HK:9922 Stock Forecast page.

Jiumaojiu International Holdings Ltd. Passes All Resolutions at 2025 AGM

Jiumaojiu International Holdings Ltd. successfully passed all proposed resolutions at its Annual General Meeting held on June 6, 2025. Key resolutions included the adoption of financial statements, declaration of dividends, re-election of directors, and granting of mandates for share repurchase and issuance. This outcome reflects strong shareholder support and positions the company for continued strategic growth and operational stability.

The most recent analyst rating on (HK:9922) stock is a Hold with a HK$2.60 price target. To see the full list of analyst forecasts on Jiumaojiu International Holdings Ltd. stock, see the HK:9922 Stock Forecast page.

Jiumaojiu International Holdings Ltd. Announces 2025 AGM with Key Resolutions

Jiumaojiu International Holdings Ltd. has announced its 2025 Annual General Meeting, where key resolutions will be discussed, including the adoption of financial statements, declaration of dividends, re-election of directors, and re-appointment of auditors. The meeting will also consider authorizing the board to repurchase shares and issue new shares, reflecting strategic moves to enhance shareholder value and operational flexibility.