Jefferies released a research report stating that operational improvements in Jiumaojiu's "Tai Er" brand in China should support margin recovery. However, store closures and weakness in other brands are putting pressure on revenue. The firm has lowered its price target for Jiumaojiu from HK$1.8 to HK$1.41, while maintaining a "Hold" rating.

The investment bank expects Jiumaojiu's first-half sales to decline 16.2% year-on-year to 2.3 billion yuan, with net profit projected at 74 million yuan. Jefferies has reduced its net profit forecasts for 2026-2028 by 4% to 19%, to 121 million yuan, 173 million yuan, and 235 million yuan respectively, reflecting the impact of store closures in 2026 and a more gradual margin recovery trajectory.