Jefferies: Lowering the target price of nine maojiu (09922) to HK$1.41 to maintain “hold” rating

The Zhitong Finance App learned that Jefferies released a research report saying that improvements in the operation of Jiumaojiu's “Taiji” in China should support the recovery of profit margins, but store closures and other weak brands put pressure on revenue. The target price for Jiumaojiu (09922) was lowered from HK$1.8 to HK$1.41 to maintain the “hold” rating.

The bank expects Jiumaojiu's sales year to drop 16.2% year-on-year to 2.3 billion yuan in the first half of the year, and net profit is expected to be 74 million yuan. Jefferies lowered its 2026-2028 net profit forecast by 4%-19% to RMB 121 million, RMB 173 million and RMB 235 million, respectively, to reflect the impact of the 2026 closure and a smoother return to profit margins.