[ET Net News Agency, 19 January 2024] Jefferies lowered its target price for Jiumaojiu
(09922) to HKD9.2 from HKD17.1 and maintained its "buy" rating.
The research house said it forecasts Jiumaojiu to report net profit of RMB212m (vs.
RMB8m net loss in 2H22) on 51% sales growth to RMB3,171bn in 2H23.
It said SSS recovery since Sept has been weaker than expected in China, and there were
challenges from staff salary increase, A&P, and more upfront costs for new store opening.
Accordingly, it cuts NP forecasts by 14%/27%/34% in 23/24/25E. (RC)