【招银国际】SSS recovery and store revamp on track-250612（7页）.pdf

1、 PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG:RESP CMBR OR http:/.hk 1 MN 12 Jun 2025 CMB International Global Markets|Equity Research|Company Update Jiumaojiu(9922 HK)SSS recovery and store revamp on track We are delighted to see SSS decli

2、ne to narrow in 2Q25E with some initial success in the store format upgrades.However,while the turnaround is still on track in general and fairly constructive,it is just kind of inline with the markets expectation.What is more important is the sustainability into 2H25E and FY26E and potential beat o

3、n top of that.We will monitor this closely going forward.Maintain HOLD but raise TP to HK$2.99.SSS has trended better in 2Q25E,potential turnaround is still on track.According to the management,Tai Er brands SSS decline has started to narrow,to double digit/low double digit/single digit in Apr/May/J

4、un 2025,after a 21.2%drop in 1Q25.With the policy change on cutting back discounts and promotion late last year,ASP has become more stable,and hence the SSS decline in 2Q25E is mostly related to volume.However,in terms of absolute level,the table turnover should have bottomed out since 4Q24 and impr

5、oved QoQ into 2Q25E.We estimate Tai Ers table turnover to be at around 3.3x in 2Q25E,compared to 3.1x in 1Q25.The reasons behind such improvement were:1)low base last year,2)reduction in level of competition,resulting in much lower drag on the ASP,3)extended holidays,inducing higher tourism and cate

6、ring related demand,4)spillover effect from the home appliances subsidies,where overall consumer sentiment was also improved.Positive progress was made in the transformation.One important reform carried out by the Tai Er brand is the upgrade in store format,which is now emphasizing more on the fresh