Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook based on its robust operational performance and expansion plans in lower-tier cities [5][8]. Core Insights - The company is positioned as a leading player in the Western fast-food sector in China, with a strong brand presence through its subsidiaries, including KFC and Pizza Hut. It aims to expand its store count to 20,000 by 2026, focusing on lower-tier cities to capture market share [7][10]. - The company has demonstrated strong operational cash flow and is committed to enhancing shareholder returns, with a target of $4.5 billion in shareholder returns from 2024 to 2026 [7][35]. - The report highlights the company's strategic focus on expanding its KFC and Pizza Hut brands, leveraging their established market presence and adapting to consumer preferences in lower-tier cities [10][30]. Summary by Sections Company Overview - The company, Yum China, has a rich history, being the first foreign fast-food brand to enter the Chinese market with KFC in 1987 and Pizza Hut in 1990. It operates multiple brands, including Taco Bell and Lavazza, and has a significant number of stores across various cities [19][21]. - The governance structure is market-oriented, with major shareholders being institutional investors, ensuring a clear and professional management approach [24][25]. Industry Analysis - The Western fast-food industry in China is characterized by high chain rates and market concentration, with significant growth potential in lower-tier cities. The market size is projected to reach 330 billion yuan by 2025 [42][44]. - Consumer preferences are shifting towards affordable dining options, with a notable increase in the frequency of visits to fast-food outlets, particularly in lower-tier cities [48][52]. Financial Forecast and Valuation - The company is expected to achieve revenues of $11.99 billion in 2025, with a projected net profit of $959.51 million, reflecting a growth rate of 5.3% [6][8]. - The current price-to-earnings (P/E) ratio is lower than that of comparable companies, indicating potential for valuation upside as the company expands its footprint in the fast-food sector [8][10].

香港交易及結算所有限公司及香港聯合交易所有限公司（「香港聯交所」）對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不會就本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任 何損失承擔任何責任。 Yum China Holdings, Inc. 百 勝 中 國 控 股 有 限 公 司 ( 於美利堅合眾國特拉華州註冊成立的有限公司 ) （股份代號：9987） | | 除本公告所披露者外，概無承授人須根據香港聯合交易所有限公 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 司證券上市規則（「上市規則」）第17章中第17.06A(2)條的規定 | | | | | | | | | | | | 作個別披露。 | | | | | | | | | | | 歸屬期及條件： | 在 視 乎 是 否 繼 續 任 在視乎是否繼續任 在 視 乎 是 否 繼 續 | | | | | | | | | | | | 職的情況下，股票 職的情況下，限制 任 職 的 情 況 下 ， ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 百勝中國控股有限公司("本公司") 呈交日期： 2025年2月16日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 | | 是 | | | 證券代號 (如上市) 09987 | 說明 | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | 事件 | | 已發行股份（不包括庫存股份）變動 | | 庫存股份變動 | | 每股發行/出售價 (註4) | 已發行股份總數 | | ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 百勝中國控股有限公司("本公司") 呈交日期： 2025年2月14日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 | 是 | | | | 證券代號 (如上市) | | 09987 | 說明 | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | | 事件 | | 已發行股份（不包括庫存股份）變動 | | 佔有關事件前的現有 ...

表格類別： 股票 狀態： 新提交 公司名稱： 百勝中國控股有限公司("本公司") 呈交日期： 2025年2月13日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 | 是 | | | | 證券代號 (如上市) | | 09987 | 說明 | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | | 事件 | | 已發行股份（不包括庫存股份）變動 | | 佔有關事件前的現有已發 | 庫存股份變動 | 每股發行/出售價 (註4) | | 已發行股份總數 | | | | | 已發行股 ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 百勝中國控股有限公司("本公司") 呈交日期： 2025年2月12日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 09987 | 說明 | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | 事件 | | | 已發行股份（不包括庫存股份）變動 | | 佔有關事件前的現有已發 | 庫存股份變動 | ...

Group 1 - The article provides an update on Yum China Holdings (NYSE: YUMC) following a previous buy recommendation due to a robust growth outlook [1] - The author emphasizes a fundamentals-based approach to value investing, focusing on companies with long-term durability and strong balance sheets [1] - There is a common misconception that low multiple stocks are necessarily cheap, but the author argues that price matters less when the growth potential is significant [1] Group 2 - The article does not contain any disclosures related to stock positions or business relationships with the companies mentioned [2] - It is noted that past performance does not guarantee future results, and no specific investment advice is provided [3]

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 百勝中國控股有限公司("本公司") 呈交日期： 2025年2月11日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 | 是 | | | | 證券代號 (如上市) | 09987 | 說明 | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | 事件 | | 已發行股份（不包括庫存股份）變動 | | 佔有關事件前的現有已發 | 庫存股份變動 | 每股 ...

Investment Rating - The investment rating for the company is "Buy" [6] Core Insights - The company reported a revenue of $11.303 billion for 2024, a year-on-year increase of 3%, and a net profit of $911 million, up 10% year-on-year. In Q4 2024, the revenue was $2.595 billion, reflecting a 4% year-on-year growth, with a net profit of $115 million, up 18% year-on-year [1][10] - The company continues to expand its store count, reaching a total of 16,395 stores by the end of 2024, with net additions of 1,751 stores for the year [2] - Same-store sales showed improvement, with a decline of only 1% in Q4 2024 compared to the same period last year, marking a continuous quarter-on-quarter improvement since Q2 2024 [3] - The company has seen significant growth in its delivery sales, which increased by 14% year-on-year in Q4 2024, and digital order revenue reached $9.6 billion, accounting for 90% of restaurant revenue [4] - The company plans to continue its store expansion, targeting an additional 1,600 to 1,800 new stores in 2025, with an increasing proportion of franchise stores [5][10] Financial Summary - For 2024, the company achieved a revenue of $11,303 million, with a year-on-year growth rate of 3% [11] - The projected revenues for 2025, 2026, and 2027 are $11,820 million, $12,655 million, and $13,639 million, respectively, with corresponding net profits of $937 million, $1,015 million, and $1,114 million [11] - The current price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 19.2x, 17.7x, and 16.2x, respectively [10][11]

Investment Rating - The report maintains a "Buy" rating for Yum China (YUMC.US/9987.HK) with a target price of $61.5, representing a potential upside of 27.1% from the current price of $48.4 [2][24]. Core Insights - Same-store sales performance is identified as a key factor influencing the company's 2025 earnings and stock price. The company anticipates a slight decline in same-store sales for 2024 due to adjustments in customer pricing to maintain steady traffic. However, operational efficiency improvements are expected to offset the negative leverage impact, allowing for slight margin expansion [1][4]. - The management's cautious outlook for 2025 reflects uncertainties in same-store performance, which is expected to significantly impact restaurant profit margins. The company aims for systematic revenue growth in the mid-single digits for 2025, with a target of opening 1,600-1,800 new stores [4][6]. - The competitive landscape is observed to be stabilizing, with some industry players reducing discounts and slightly increasing menu prices. Yum China plans to maintain stable pricing for KFC while lowering prices for Pizza Hut to attract more customers [4][11]. Financial Projections - Revenue projections for Yum China are as follows: - 2023: $10,978 million - 2024: $11,303 million (3.0% growth) - 2025: $11,720 million (3.7% growth) - 2026: $12,509 million (6.7% growth) - 2027: $13,281 million (6.2% growth) [6][9]. - Net profit estimates are projected as: - 2023: $827 million - 2024: $911 million (10.2% growth) - 2025: $924 million (1.4% growth) - 2026: $996 million (7.8% growth) - 2027: $1,099 million (10.4% growth) [6][9]. Market Performance - The current market capitalization of Yum China is approximately $18,253 million, with an average daily trading volume of $102.9 million over the past three months [2][4]. - The stock has traded within a 52-week range of $28.5 to $52.0, indicating significant volatility [2][4].