Jiumaojiu International Holdings Ltd. (9922) AI Stock Analysis

• Market Cap: HK$3.87B
• Dividend Yield: 0.72%
• Average Volume (3M): 27.82M
• Price to Earnings (P/E): 65.0
• Beta (1Y): 2.13
• Revenue Growth: -0.41%
• EPS Growth: -87.88%
• Country: HK
• Employees: 20,735
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Restaurants
• EPS (TTM): -0.01
• Shares Outstanding: 1,397,633,700
• 10 Day Avg. Volume: 45,273,839
• 30 Day Avg. Volume: 27,819,427
• PEG Ratio: -0.70
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.39
• 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$2.99
• Price Target Upside: 7.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: HK$3.00 ▲(8.30%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

Pricing Strategy

The reduction in competition and policy change on cutting back discounts have stabilized average selling prices, improving overall consumer sentiment and demand.

Store Upgrades

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

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.

Sales Growth

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

Jiumaojiu International Holdings Ltd. Business Overview & Revenue Model

Company Description

Jiumaojiu International Holdings Ltd. (9922) is a prominent player in the Chinese restaurant industry, specializing in the operation of a variety of casual dining restaurants. The company is primarily known for its diverse range of traditional Chinese cuisines, with popular brands such as Tai Er, which focuses on sauerkraut fish, and Jiu Mao Jiu, offering Northwest Chinese cuisine. Jiumaojiu is dedicated to providing high-quality dining experiences across its expansive network of restaurants in 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
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: 2.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 2.77 is above the 20-day moving average (MA) of 2.62, above the 50-day MA of 2.52, and below the 200-day MA of 2.98, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.48 is Neutral, neither overbought nor oversold. The STOCH value of 43.83 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%	3.44%	1.63%	-47.80%
0341	69 Neutral	HK$4.00B	17.23	8.26%	8.60%	2.29%	35.94%
6811	64 Neutral	HK$903.42M	14.90	6.54%	5.38%	2.49%	-33.12%
9922	63 Neutral	HK$3.87B	65.02	1.72%	0.72%	-0.41%	-87.88%
Sector *	62 Neutral	C$5.24B	11.08	18.82%	3.79%	5.08%	6.52%
0538	60 Neutral	HK$916.89M	19.75	-0.69%	7.62%	-7.18%	-110.84%
1443	58 Neutral	HK$80.60M	10.67	-41.01%	4.84%	1.74%	-46.43%

Jiumaojiu International Holdings Ltd. Corporate Events

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.

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.