JIUMAOJIU (09922) declined over 3% again. As of press time, the stock fell 3.33% to HK$2.61, with a trading volume of HK$57.16 million.

On the news front, JIUMAOJIU recently released its interim results for 2025, showing revenue of RMB 2.753 billion, down 10.1% year-on-year. Profit attributable to equity shareholders was RMB 60.69 million, declining 16% year-on-year. In terms of same-store sales data, the three major brands - Taier, Song Hotpot, and JIUMAOJIU - recorded same-store sales growth rates of -19.0%, -20.1%, and -19.8% respectively.

Notably, the company had a net closure of 88 stores in the first half of the year, mainly due to the termination of related lease agreements upon expiry and underperforming results at some restaurants.

Morgan Stanley lowered its earnings per share forecasts for JIUMAOJIU for 2025-2027 by 9%, 6%, and 10% respectively, primarily reflecting weaker-than-expected demand since the beginning of the year. Based on the downward revision of earnings forecasts, the firm cut its target price from HK$2.3 to HK$2.1, maintaining a "Reduce" rating.

The firm also expects the company's share price to decline within the next 30 days, as Hang Seng Indexes Company recently announced that JIUMAOJIU will be removed from the Hang Seng Composite Index effective September 8, meaning the stock will be excluded from the Stock Connect scheme. As of August 22, southbound funds held 311.7 million shares, representing 22.3% of total share capital and 44.4% of the free float. The adjustment is expected to trigger significant selling pressure in the short term.