Jiumaojiu International Holdings Ltd. (9922) AI Stock Analysis

• Market Cap: HK$3.34B
• Dividend Yield: 6.05%
• Average Volume (3M): 16.40M
• Price to Earnings (P/E): 56.1
• Beta (1Y): 2.04
• Revenue Growth: -0.41%
• EPS Growth: -87.88%
• Country: HK
• Employees: 20,735
• Sector: Consumer Cyclical
• Sector Strength: 76
• Industry: Restaurants
• EPS (TTM): 0.04
• Shares Outstanding: 1,397,633,700
• 10 Day Avg. Volume: 25,073,826
• 30 Day Avg. Volume: 16,397,964
• PEG Ratio: -0.74
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.98
• 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$2.64
• Price Target Upside: 10.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 50 Neutral
• Price Target: ―

Jiumaojiu International Holdings Ltd. faces significant challenges, primarily in profitability and cash flow, despite steady revenue growth. The technical indicators suggest bearish market momentum, with the stock trading below key moving averages and nearing oversold conditions. While the high P/E ratio points to overvaluation concerns, the attractive dividend yield offers some compensation. Investors should be cautious and monitor the company's efforts to improve operational efficiency and manage costs effectively.

Positive Factors

Digitalization

Digitalization is a key focus, aiming to better leverage the new supply chain center in Guangzhou.

Product Quality

The company plans to focus on product quality as their lifeline and ensure the high standard of every dish.

Negative Factors

Earnings Projections

Earnings projections for 2024-2026 have been revised down due to softer-than-expected same-store sales growth, slower store expansion, and higher impairment loss.

Same-Store Sales Growth

The company's same-store sales growth trend has deteriorated, especially for the Tai Er brand.

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 the operation of its restaurant chains. The company earns money by serving a wide array of Chinese dishes to its customers, with income derived from dine-in services, takeaway, and delivery options. Key revenue streams include sales from its flagship brands, Tai Er and Jiu Mao Jiu, which attract a large customer base due to their distinct culinary offerings and strong brand recognition. Additionally, the company's strategic location of restaurants in high-traffic areas and innovative marketing initiatives contribute significantly to its earnings by driving foot traffic and increasing average transaction values. Partnerships with delivery platforms further bolster revenue by expanding customer reach and convenience.

Jiumaojiu International Holdings Ltd. Financial Statement Overview

Summary

Jiumaojiu International Holdings Ltd. faces challenges in profitability and cash flow, despite revenue growth. The declining profit margins and cash flow issues could pose risks to future financial stability. However, the balance sheet remains relatively stable, suggesting some resilience. Monitoring cost control and improving operational efficiency will be crucial for the company's future performance.

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
	EBIT
346.33M	1.78B	245.91M	573.46M	217.91M
	EBITDA
545.94M	1.45B	768.72M	1.08B	597.44M
	Net Income Common Stockholders
55.81M	453.46M	49.28M	339.94M	124.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.12B	1.80B	1.95B	2.08B	2.52B
	Total Assets
6.49B	6.52B	5.41B	5.14B	4.81B
	Total Debt
2.56B	2.33B	1.68B	1.50B	1.33B
	Net Debt
1.96B	1.00B	581.48M	162.70M	-516.77M
	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
0.00	345.14M	314.18M	519.90M	290.49M
	Operating Cash Flow
0.00	1.01B	684.24M	856.18M	570.95M
	Investing Cash Flow
0.00	-150.19M	-587.69M	-490.43M	-1.08B
	Financing Cash Flow
0.00	-646.41M	-480.85M	-788.59M	2.37B

Jiumaojiu International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9922, the sentiment is Negative. The current price of 2.39 is below the 20-day moving average (MA) of 2.52, below the 50-day MA of 2.76, and below the 200-day MA of 3.02, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 33.65 is Neutral, neither overbought nor oversold. The STOCH value of 16.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	62 Neutral	$6.84B	11.22	2.83%	3.93%	2.65%	-21.93%
9922	50 Neutral	HK$3.34B	56.10	1.72%	6.05%	-0.41%	-87.88%
ASMVF		$2.83B	56.37	2.23%	1.29%	―	―
GNNSF		$3.25B	0.93	-6.09%	―	―	―
HENGF		$54.01M	24.00	-2.04%	―	―	―

Jiumaojiu International Holdings Ltd. Corporate Events

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.

Jiumaojiu Reports Stabilization Amidst Sales Decline in Q1 2025

In the first quarter of 2025, Jiumaojiu International Holdings Ltd. reported a year-on-year decline in same store average daily sales across its major brands, attributed to external environmental pressures. Despite this, there were signs of stabilization with slight increases in average daily sales for Tai Er and Jiu Mao Jiu compared to the previous quarter. The company maintained stable average spending per customer, reflecting the success of its strategic focus on product quality and customer experience over short-term promotions.

Jiumaojiu Announces Special Dividend for 2024

Jiumaojiu International Holdings Limited, a company listed on the Hong Kong Stock Exchange, has announced a special dividend of HKD 0.02 per share for the financial year ending December 31, 2024. The dividend will be paid on July 4, 2025, following shareholder approval on June 6, 2025. This announcement reflects the company’s financial strategy and commitment to returning value to its shareholders.

Jiumaojiu International Holdings Ltd. Reports 2024 Financial Results with Revenue Growth Amid Profit Decline

Jiumaojiu International Holdings Ltd. announced its audited consolidated results for the year ending December 31, 2024, showing a slight increase in revenue to RMB 6,073,644,000 from RMB 5,985,850,000 in 2023. Despite the revenue growth, the company experienced a significant decline in profit before taxation and profit for the year, attributed to decreased store-level operating profit and core operating profit. The company also proposed a final and special dividend, reflecting its commitment to returning value to shareholders. Operationally, the company expanded its number of restaurants but faced challenges in seat and table turnover rates and same-store sales growth, indicating a potential need for strategic adjustments to enhance operational efficiency and market competitiveness.

Jiumaojiu International Holdings Ltd. Declares Final Dividend for 2024

Jiumaojiu International Holdings Ltd. announced a final cash dividend of HKD 0.02 per share for the financial year ending December 31, 2024. The dividend will be paid on July 4, 2025, following shareholder approval on June 6, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may influence its market positioning by demonstrating financial stability and shareholder focus.

Jiumaojiu International Holdings Ltd. Schedules Board Meeting for Annual Results

Jiumaojiu International Holdings Ltd. has announced a board meeting scheduled for March 28, 2025, to approve the consolidated annual results for the year ending December 31, 2024, and to consider recommending a final dividend. This announcement is significant as it outlines the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Jiumaojiu International Holdings Issues Profit Warning Amidst Market Challenges

Jiumaojiu International Holdings Ltd. has issued a profit warning, indicating a significant decline in profit for FY2024 compared to FY2023. The decrease is attributed to factors such as a decline in same-store performance due to external environmental changes and increased competition, one-off store closure and impairment losses, and reduced other income including government subsidies. Despite these challenges, the company is implementing strategies to enhance operational performance, such as monitoring underperforming restaurants, refining product quality, and improving supply chain efficiency. The board remains optimistic about the company’s long-term growth prospects, citing potential policy support and the company’s competitive strengths.