On the evening of August 22, Jiumaojiu International Holdings Limited ("Jiumaojiu") issued an interim results announcement for the six months ended June 30, 2023.。

Performance data show that the company's revenue increased by 51% year-on-year in view of the weakening impact of the outbreak..6% to 28.7.9 billion yuan (RMB, the same below); first-half net profit recorded 2..2.2 billion yuan, up 285.12%; earnings per share 0.15 yuan, 0 in the same period last year.04 yuan, no interim dividend。

Multi-brand force long-term development, a number of stores everywhere

Jiumaojiu is a Chinese restaurant chain management as the core of the catering group, mainly engaged in Chinese restaurant brand management and operation business, including restaurant management, takeaway business and specialty sales.。The company has created and operated five Chinese food and beverage brands in different segments, namely, Jiumaojiu Northwest Cuisine, Taier Sauerkraut Fish, Lai Meili Rattan Pepper Roast Fish, Unintelligent Chongqing Hot Pot Factory and Uncle Na Wei is a chef.。The company mainly operates in China。

Benefiting from the relaxation of the epidemic policy and the re-opening of the mainland, the company was able to expand its restaurant network to expand its market share.。In the first half of 2023, 67 new restaurants were opened, including 46 Taier restaurants, 16 unintelligent hot pot restaurants, 1 Jiumaojiu restaurant and 4 Lai Meili grilled fish restaurants.。Of these, two ninety-nine restaurants were closed in the first half of the year due to the termination of the relevant lease agreements and the adjustment of internal strategies.。

The announcement also mentioned that in the second half of the year, Jiumaojiu will continue its store expansion plan, focusing on brands that it believes have greater growth potential.。In the first half of the year, the company has newly expanded 14 cities in China, and is expected to expand 11 cities in the second half of the year, and in addition to expanding the Taier brand, the company will continue to invest more resources in the unintelligent hot pot brand and Lai Meili grilled fish brand.。

In addition, Jiumaojiu has also set its sights on overseas markets.。As of June 30, 2023, Kumao had operated 621 restaurants in 123 cities in the Mainland, Canada, Malaysia and Singapore, an increase of 146 over the same period last year.。

Deep plowing of market segments, Taiji leads scale growth

According to the announcement, Jiumaojiu has been closely monitoring customers' dining trends and preferences and is striving to maintain the best restaurant brand mix.。

The overall performance of the company's brand restaurants improved compared to the first half of the year.。Thanks to the expansion of the restaurant network and the relaxation of the epidemic policy, the turnaround rate and turnaround rate of all brands of restaurants have increased, with revenue contributions from Taier, Guang hot pot and Lai Meili grilled fish increasing by 47%, respectively..4%, 331.2% and 114.0%。

Financial results show that Taier pickled fish restaurant revenue during the period 21.8.8 billion yuan, accounting for 76% of total revenue。This also means that Jiumaojiu's performance recovery is largely due to the improved operating conditions of the core brand Taiji.。However, due to the company's expansion of its other brands, resulting in a slight decline in the proportion of Taiji's revenue, but the flaws are not hidden.。

Not only that, Taier, unintelligent hot pot and Lai Meili grilled fish per capita consumption has decreased, because the company considered the market situation and industry competition pattern, decided to adjust the menu supply and food prices, to bring more benefits to customers.。

According to the news, Jiumaojiu will speed up the overseas layout, open up long-term shop space, and unintelligent hot pot profitability, step national expansion, tend to cost-effective development.。In addition, Lai Meili is aiming at Southeast Asia, testing overseas markets at the same time, and plans to grow together with the main brand Taier.。

Financial report data is delicious, the major banks have different tastes.

After the ninety-nine earnings report, the major banks have expressed different opinions on their performance data.。

Among them, Lyon published a research report that the first half of the performance of Jiumaojiu recovery, performance is encouraging, revenue during the period increased by 52% year-on-year, however, the bank expects that as the brand becomes more mature, the number of new stores will be reduced year-on-year, the possibility of Chongqing hot pot factory will bring the company back to the high growth stage is low, and the expansion of profit margins will not help.。As a result, the bank cut its target price from HK $23 to HK $13 in anticipation of a slowdown in the Group's growth prospects..HK $2, downgraded from "buy" to "outperform."。

CITIC Securities said that the summer season of Jiumaojiu performed well, passenger flow continued to improve month-on-month, and the overall turnaround rate of each brand continued to rise in May-July.。Given that the company is in a rapid growth cycle and sound management, give a target price of HK $20 and maintain a "buy" rating.。