Macro and Strategy - The macroeconomic review indicates that Shenzhen's GDP is expected to grow by 5.5% in 2025, achieving the anticipated growth target, with foreign trade increasing by 1.4% despite a decline in exports due to a high base in 2024 [7] - The strategy report highlights that A-share earnings are stabilizing, driven by cost reductions and the new economy outpacing the old economy, with a projected 10% growth in A-share earnings for 2026 under neutral assumptions [8][10] Industry and Company - The North Exchange's January 2026 report shows a significant increase in market activity, with a total of 292 listed companies and a total market value of 936.3 billion yuan, reflecting a 7.7% increase in total market value [11] - In the electric power equipment sector, domestic demand is expected to remain strong, with a focus on high-voltage direct current (HVDC) and smart meters, as the State Grid's fixed asset investment is projected to reach 4 trillion yuan, a 40% increase from the previous five-year plan [14][15][17] - Yum China reported a 22% year-on-year increase in net profit for Q4 2025, with total revenue reaching $2.823 billion, driven by a 34% increase in delivery sales [18][19][21]

Group 1 - The core viewpoint of the article highlights Yum China’s financial performance for the fourth quarter and full year of 2025, showing a total revenue growth of 4% to $11.8 billion and an operating profit of $1.3 billion, which is an 11% increase year-on-year [1] - Store expansion is identified as a key driver of Yum China's revenue growth, with a net addition of 1,706 stores in 2025, bringing the total to 18,101 stores by year-end [1] - The two main brands, KFC and Pizza Hut, experienced a store growth rate of approximately 12% in 2025, with KFC increasing from 11,648 to 12,997 stores and Pizza Hut from 3,724 to 4,168 stores [1] Group 2 - The article notes that the total number of new stores for the two main brands in the previous year was 1,793, which exceeds Yum China's total new store count of 1,706 for 2025, indicating a reduction in the number of secondary brands [3] - Yum China aims to accelerate its store expansion, targeting 20,000 stores by 2026 and 30,000 by 2030, requiring a net addition of approximately 1,900 stores in 2026, averaging over 5 new stores per day [3] - The franchise model is crucial for scaling growth, with the proportion of franchise stores increasing for both KFC and Pizza Hut from 15% to 37% and 2% to 31% respectively from 2023 to 2025 [3] Group 3 - The takeaway business has significantly impacted Yum China's performance, with a 25% year-on-year growth in delivery sales, which now account for 48% of restaurant revenue, up from 39% in 2024 [5] - In the fourth quarter, the delivery sales proportion for KFC and Pizza Hut reached 53% and 54% respectively, indicating a growing reliance on delivery services [5] - To address rising costs associated with delivery, Yum China announced a price increase for delivery products by an average of 0.8 yuan, while maintaining dine-in prices [5]

Macro and Strategy - The macroeconomic review indicates that Shenzhen's GDP is expected to grow by 5.5% in 2025, with foreign trade increasing by 1.4% despite a decline in exports due to a high base in 2024 [7] - The A-share market is projected to see a 10% profit growth in 2026, driven by cost reductions and the rise of new economy sectors outpacing traditional sectors [8][10] Industry and Company - The North Exchange saw a significant increase in trading activity in January 2026, with a total of 292 listed companies and a market capitalization of 936.3 billion yuan, reflecting a 7.7% increase [11] - The electric power equipment industry is expected to benefit from strong domestic demand and overseas expansion opportunities, particularly in high-voltage direct current (HVDC) technology [14][15] - Yum China reported a 22% year-on-year increase in net profit for Q4 2025, with total revenue reaching $2.823 billion, driven by a 34% increase in delivery sales [19][21] Investment Recommendations - Focus on high-voltage direct current and smart meter sectors, recommending companies like Pinggao Electric and XJ Electric for their growth potential [17] - Anticipate continued overseas expansion for Chinese companies in the electric power sector, suggesting attention to companies like Sifang Co. and Mingyang Smart Energy [17]

证券研究报告 | 2026年02月05日 百胜中国（09987.HK） 优于大市 同店收入连续 3 季度正增，2026 年门店扩张提速 2025Q4 归母净利润同增 22%。2025Q4，公司实现收入 28.23 亿美元/+8.8%； 实现经营利润 1.87 亿美元/+23.8%；归母净利润 1.40 亿美元/+21.7%； EPS 为 0.40 美元。分品牌看，2025Q4，肯德基分部收入 21.25 亿美元 /+8.75%；经营利润 2.23 亿美元/+16.1%；经营利润率为 10.5%/+0.7pct。 必胜客分部收入 5.40 亿美元/+5.9%；经营利润 2000 万美元/+42.9%； 经营利润率为 3.7%，同比+1.0pct。分渠道看，外卖收入同增 34%，增 速环比继续上行，餐厅收入占比已达到 53%。 外卖占比提升人工成本上行，餐厅利润率表现优秀。2025Q4，薪金及雇员 福利占比约 29.3%，同比+1.1pct，外卖收入占比提升致外卖骑手成本上 升影响为主；食品及原材料占比为 31.7%，同比-0.2pct；物业租金及其 他经营开支占比约 26.0%，同比-1.6pct，公司餐厅利润 ...

Investment Rating - The report maintains a "Buy" rating for Yum China [5] Core Insights - The company achieved revenue of $2.8 billion in Q4 2025, a year-over-year increase of 9%, exceeding expectations. For the full year 2025, revenue reached $11.8 billion, up 4% year-over-year [1] - The company plans to return $1.5 billion to shareholders in 2026, corresponding to a dividend yield of approximately 8% based on the current market capitalization [1] - The company is expected to continue expanding its store network, with over 1,900 new stores planned for 2026, increasing the proportion of franchise stores from 37% to a target of 40-50% [3] Financial Performance - In Q4 2025, the operating profit was $187 million, a 25% increase year-over-year, and the net profit attributable to shareholders was $140 million, up 22% year-over-year [1] - For the full year 2025, the operating profit was $1.29 billion, an 11% increase year-over-year, and the net profit attributable to shareholders was $929 million, a 2% increase year-over-year [1] - The company expects revenues for 2026-2028 to be $12.36 billion, $13.15 billion, and $13.97 billion respectively, with corresponding net profits of $1.003 billion, $1.096 billion, and $1.188 billion [4] Operational Efficiency - The profit margins for KFC and Pizza Hut improved in Q4 2025, with KFC at 14.0% and Pizza Hut at 9.9%, reflecting a year-over-year increase of 0.7 and 0.6 percentage points respectively [2] - The company has been focusing on cost reduction and efficiency improvements, with a management expense ratio of 4.9% for the full year 2025, an improvement of 0.1 percentage points year-over-year [2]

2月5日，A股和港股行情有所分化。港股主要指数午后拉升，收盘逆势飘红。港股消费板块表现较为亮 眼，多只相关ETF涨幅居市场前列。 值得注意的是，在港股市场近日的震荡调整中，恒生科技指数大幅下挫。与大盘走势不尽如人意形成对 比的是，港股中的消费和红利板块展现出较强韧性，多只相关基金净值表现随之水涨船高。展望后市， 多家公募机构认为，港股仍处于全球估值洼地，短期扰动或不改中长期配置性价比，看好结构性投资机 会。 ● 本报记者张韵 港股市场获关注 2月5日，港股主要指数在早盘下挫后震荡反弹，最终收红。恒生指数收盘报26885.24点，微涨0.14%； 恒生科技指数收盘报5406.13点，上涨0.74%。 回顾近期行情，港股市场整体处于震荡调整之中。尤其是2月2日，港股主要指数跳空低开，并大幅下 跌，引发较多关注。恒生科技指数当日跌幅达3.36%，随后连续下跌，更是在2月5日早盘触及阶段新 低，点位一度回撤至2025年7月水平。 业内人士分析，此轮调整的核心原因，源于市场对美联储政策转向的担忧。美联储主席新提名人选主张 的"降息+缩表"政策组合引发全球流动性预期扰动。港股作为离岸市场，容易成为资金波动的敏感地 带。叠 ...

Core Insights - Yum China Holdings, Inc. (YUMC) reported strong fourth-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate, showing year-over-year growth in both metrics [1][4] Financial Performance - Adjusted earnings per share for Q4 were 40 cents, surpassing the consensus estimate of 35 cents by 14.3%, and increased 33% year over year [4] - Total revenues reached $2.8 billion, beating the consensus mark of $2.7 billion and growing 8.8% from the previous year [4] - System sales (excluding foreign exchange) rose 7% year over year, with KFC system sales increasing by 8% and Pizza Hut by 6% [5] Operational Highlights - Total costs and expenses were $2.64 billion, up 8% from last year, while the restaurant margin improved by 70 basis points to 13% due to savings in food, paper, and occupancy costs [6] - Adjusted operating profit grew 25% to $187 million, and adjusted EBITDA increased to $318 million from $292 million the previous year [6] Business Segments - KFC's revenues rose 9% to $2.1 billion, with operating profit up 16% to $223 million [7] - Pizza Hut's revenues climbed 6% to $540 million, and operating profit surged 52% to $20 million [7] 2025 Highlights - Total revenues for 2025 were $11.8 billion, compared to $11.3 billion in 2024 [8] - Adjusted EBITDA for 2025 was $1.78 billion, up from $1.69 billion in 2024, and adjusted EPS increased to $2.51 from $2.33 [8] - The company opened 1,706 net new stores, with franchisees accounting for 31% of the openings, bringing the total store count to 18,101 as of December 31, 2025 [8] Shareholder Returns - Yum China returned $1.5 billion to shareholders in 2025, including $1.14 billion in share repurchases and $353 million in cash dividends [11] - The board declared a 21% increase in the cash dividend to $0.29 per share, payable on March 25, 2026 [11] 2026 Outlook - For 2026, Yum China plans to open a total of 20,000 stores, with capital expenditure expected between $600 million and $700 million [12] - The company aims to return $1.5 billion to shareholders in 2026 [12]

Company Overview - Yum China Holdings (YUMC) currently holds a Momentum Style Score of B, indicating a positive outlook based on momentum investing principles [3][12] - The company has a Zacks Rank of 2 (Buy), which is supported by a strong track record of outperforming the market [4][12] Price Performance - YUMC shares have increased by 0.69% over the past week, while the Zacks Retail - Restaurants industry has declined by 3.76% during the same period [6] - Over the past month, YUMC's price change is 11.78%, significantly outperforming the industry's 2.28% [6] - In the last quarter, YUMC shares rose by 14.87%, and over the past year, they gained 16.74%, compared to the S&P 500's increases of 1.9% and 15.32%, respectively [7] Trading Volume - The average 20-day trading volume for YUMC is 1,198,519 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, three earnings estimates for YUMC have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $2.85 to $2.90 [10] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [10]

Core Viewpoint - The Nasdaq Golden Dragon China Index saw an initial increase of 1.21%, indicating positive market sentiment towards Chinese stocks listed in the U.S. [1] Company Performance - NIO experienced a significant rise of 7.4% - Miniso increased by 5.4% - Yum China rose by 3.4% - Li Auto gained 2.8% - ZTO Express, Zai Lab, Bilibili, Baidu, and Kingsoft Cloud all saw increases of over 2% - Alibaba had a modest increase of 0.7% - Pony.ai declined by 1.2% - New Oriental fell by 2.8% [1] ETF Performance - KWEB ETF rose by 1.14% - CQQQ ETF increased by 0.7% - ASHR ETF decreased by 0.1% - ASHS ETF fell by 1.3% [1]

Market Overview - The Hang Seng Index opened lower but managed to close up by 0.14% [1] - The geopolitical situation remains stable, with Iran set to negotiate nuclear issues with the U.S. on February 6 [1] - Gold and silver prices fell significantly, with silver dropping over 14% and gold falling more than 2% to below $4,900 per ounce [1] International Relations - Russian President Putin plans to visit China in the first half of 2026 following a video call with Chinese leaders [2] - U.S. and Chinese leaders had a positive discussion regarding regional issues and economic cooperation, with a planned visit by Trump to China in April [2] - China has requested state-owned enterprises to pause new investment projects in Panama [2] Technology Sector - Despite declines in U.S. tech stocks, some Chinese tech companies like Naxin Micro (02676) reported strong earnings and plan to raise product prices by 10%-25% [3] - Baidu (09888) announced a stock buyback plan of up to $5 billion and plans to introduce a dividend policy by 2026, leading to a nearly 3% increase in its stock price [3] - Xiaomi (01810) repurchased shares worth HKD 146 million, also seeing a nearly 3% rise [3] - Tencent (00700) is expected to maintain double-digit growth in its gaming business by 2026, with advertising revenue projected to grow around 20% [3] Consumer Sector - Kweichow Moutai (600519.SH) has shown strong performance, boosting consumer valuations [4] - Oriental Selection (01797) surged over 10% due to its unique brand and membership model [4] - Pop Mart (09992) reported significant demand for its new products, with resale prices on secondary markets showing substantial premiums [4] Restaurant Sector - Yum China (09987) reported total revenue of $11.797 billion for 2025, a 4% increase year-on-year, with net profit rising by 2% [5] - Haidilao (06862) is seeing positive impacts from the return of its founder, with plans for expansion and new brand growth [5] - Brainstorm Aurora-B (06681) announced a strategic partnership to promote digital health products in Southeast Asia, with a significant stock price increase of over 15% [6] Energy Sector - The U.S. is experiencing a surge in natural gas power generation capacity, with over 29 GW under construction, but many projects may face delays due to a lack of available gas turbines [7] - Companies like Eagle Precision (01286) and Dongfang Electric (01072) are positioned to benefit from this trend, with expectations of increased demand for gas turbine components [7] Aviation Sector - Cirrus Aircraft (02507) launched the new G3 Vision Jet, enhancing its product line and expected to improve profit margins [8] - The new jet model is designed for private and corporate users, featuring significant upgrades in safety and comfort [8] - Cirrus is projected to deliver approximately 800 aircraft in 2025, with new orders expected to reach around 600 units [9]