Investment Rating - Maintains a **Buy** rating with a target price of **HKD 294.91**, based on a **15x FY25E P/E** [1] - The stock is currently trading at **13x FY25E P/E**, indicating it is not overvalued [1] Core Views - Despite weak sales growth in Q2 2024, net profit saw a significant increase, driven by cost management initiatives [1] - The report remains cautious about revenue growth in 2H24E due to high base effects and a weak macroeconomic environment [1] - Confidence in a turnaround in 4Q24E is supported by initiatives like **Project Fresh Eye**, **Project Red Eye**, and the introduction of more profitable store formats such as **K-Coffee** and **Pizza Hut's WOW model** [1] - The report expects **Q3 and Q4 sales/OP/NP growth** to be around **2%/8%/7%** and **+1%/30%/13%**, respectively [1] Sales and Profitability - Q2 2024 sales grew by **1% YoY** to **USD 2.68 billion**, below expectations, but net profit increased by **8% YoY** to **USD 212 million**, exceeding estimates [5] - **KFC's SSSG** declined by **3%** in Q2 2024, while **Pizza Hut's SSSG** fell by **8%**, though Pizza Hut's profitability outperformed KFC [5] - **Delivery sales** grew by **11%**, while **dine-in sales** declined by **3%** in Q2 2024 [5] - **FY24E net store opening target** remains at **1,500 to 1,700**, with a capital expenditure target of **USD 700-850 million** [5] Cost Management and Efficiency - **Project Red Eye** aims to improve supply chain efficiency by simplifying SKUs and reducing unnecessary items [1] - **Project Fresh Eye** focuses on reducing operational complexity, allowing store managers to focus on other tasks [1] - Increased use of **AI and automation**, with over **80% of Pizza Hut stores** equipped with automated rice cookers and **50% with robotic servers** [1] - **Labor costs** are expected to remain low, around **LSD levels** in FY24E, and **G&A expenses** are targeted at **5% of sales**, down from **5.8% in FY23** [1] Store Expansion and Formats - **K-Coffee** targets **500-600 stores** by FY24E, with **300 stores** already opened by July 2024 [1] - **Pizza Hut's WOW model** aims for **200 stores** by FY24E, with **100+ stores** opened by July 2024 [1][9] - The **WOW model** features simpler operations, targeting solo diners and value-conscious consumers, with promising initial results [10] Financial Performance and Forecasts - **FY24E revenue** is expected to grow by **1.4% YoY** to **USD 11.13 billion**, with **net profit** increasing by **5.1% YoY** to **USD 869 million** [12] - **FY25E revenue** is forecasted to grow by **9.1% YoY** to **USD 12.14 billion**, with **net profit** rising by **8.5% YoY** to **USD 943 million** [12] - **FY26E revenue** is projected to grow by **8.7% YoY** to **USD 13.19 billion**, with **net profit** increasing by **14.4% YoY** to **USD 1.08 billion** [12] Valuation and Peer Comparison - The stock is trading at a **15.4x FY24E P/E**, compared to the industry average of **28.8x** [13] - **ROE** is expected to remain stable at **11.6%** in FY24E and FY25E, increasing slightly to **11.9%** in FY26E [12] - **Dividend yield** is forecasted to increase from **1.8% in FY24E** to **2.8% in FY26E** [12] Key Initiatives and Innovations - **Pizza Hut's entry-level priced pizzas** saw double-digit growth in Q2 2024, driven by expanded price ranges and innovative new products [1] - **Single-person meals** and new store formats like **K-Coffee** and **Pizza Hut's WOW model** are expected to drive incremental sales and profit [1][9]

7 Aug 2024 CMB International Global Markets | Equity Research | Company Update Yum China (9987 HK) The best-in-class costs management in 2Q24 Sales growth was indeed a miss in 2Q24, but the net profit was a significant beat. For 2H24E, we are still very cautious about the demand and so as the level of competition. However, thanks to various efforts like Project Fresh Eye, Project Red Eye, rationalizing number of SKUs, more direct sourcing, and ramp up of more profitable store formats (e.g. K-coffee and Pizz ...

证券所究报告 百姓中国 (9987 HK) 经营利润增长竞眼，创新居型看点多 件휴研究中报点评 2024 年８月 06 日 | 中国香港素枚 2Q24 泰得冷利润 2.12 亿美元，冷利润超敌们前赚预期 百胜中国 2Q24 实现妆入 26.8 亿美元/yoy+1%，不计外币换算的影响 yoy+4%； 核 心 经 容 利 润 2.75 亿 美 无 /yoy+12%， 核 心 净 利 润 率 10.0%/yoy+0.7pct，净利润 2.12 亿美元/yoy+8%，好手表们前晾预期 (1.75-1.99 亿美元)，数字化能力力强对运营效率优化效果明显。公司办快 性价比产品研发，膏悦弥非杂胜客 WOW 店型取得一定进展，增长韧性 有望进一步發化。立足长期，百胜中国品牌/规模/数字化/供应链等方面优势 不断积累，有望实现模与效率的良性手衡。我们预计 24/25/26 年 EPS 为 2.19/2.42/2.71 美元，参考 24 年可比公司 Wind 朴彭博一致预期 21x PE 均 值，基于 21x 24 辛 PE 得出自标价 359.30 港币。维持"买入"评级。 同店经营保持稳使，运营效单视升，核心经营利润同比 ...

Investment Rating - The report maintains a "Buy" rating for the company, with an expected PE ratio of 14.3X for 2024E, 13.0X for 2025E, and 11.8X for 2026E [1] Core Views - The company's 2Q24 revenue reached $2.68 billion, a 1% YoY increase (4% excluding currency impact), with core operating profit at $280 million (+12% excluding currency impact) and net profit attributable to shareholders at $210 million (+8%, +11% excluding currency impact) [1] - Store expansion supported revenue growth, with net new stores contributing 8% to system sales, while same-store sales declined by 4% due to demand pressure [1] - The company's total number of stores reached 15,423 by 2Q24, with a net increase of 401 stores in the quarter [1] - KFC's same-store sales declined by 3% in 2Q24, with a restaurant margin of 16.2% (-1.1pct, -0.6pct excluding comparable items) [1] - Pizza Hut's same-store sales declined by 8% in 2Q24, but restaurant margin improved to 13.2% (+0.8pct, +1.1pct excluding comparable items) [1] - The company returned $994 million to shareholders through dividends and buybacks in 1H24, with plans to distribute $250 million in cash dividends and $1.25 billion in buybacks for the full year 2024 [1] Financial Performance Summary - Revenue is projected to grow from $11.311 billion in 2024E to $13.483 billion in 2026E, with a CAGR of 8.78% [3] - Net profit attributable to shareholders is expected to increase from $874 million in 2024E to $1.059 billion in 2026E, with a CAGR of 9.78% [3] - ROE is forecasted to improve from 15.16% in 2024E to 18.39% in 2026E [3] - The company's P/E ratio is expected to decline from 14.31X in 2024E to 11.82X in 2026E, indicating potential undervaluation [3] Operational Highlights - KFC's K-Coffee store count increased from around 100 in March to approximately 300 by July, leveraging shared kitchen and labor resources for higher efficiency [1] - Pizza Hut's WOW stores, offering lower-priced products, expanded to over 100 locations by July, targeting cost-conscious customers [1] - The company achieved significant cost optimization through automation, labor savings, and improved management efficiency, with overall restaurant margin at 15.5% and management expense ratio at 5.0% in 2Q24 [1]

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） 2024年第二季度財務業績公告 百勝中國控股有限公司（「本公司」）謹此發佈截至2024年6月30日止第二季度的未經審 核業績公告（「2024年第二季度業績公告」）。本2024年第二季度業績公告可於香港聯 交所網站www.hkexnews.hk及本公司網站http://ir.yumchina.com閱覽。 承董事會命 百勝中國控股有限公司 屈翠容 董事及首席執行官 香港，2024年8月6日 於本公告日期，本公司董事會包括董事會主席及獨立董事胡祖六博士、董事屈翠容女士及Robert B. AIKEN先生以及獨立 董事Peter A. BASSI先生、Edouard ETTEDGUI先生、David HOFFMANN先生、盧蓉女士、邵子 ...

Investment Rating - Buy (首次评级) [1] Core Views - 百胜中国 is the largest chain restaurant company in China with 15,022 stores as of 1Q24, operating brands like KFC, Pizza Hut, and Lavazza [1] - The company has a high and stable ROE, averaging 15.0% from 2019 to 2023, and plans to return at least $3 billion to shareholders through dividends and buybacks from 2024E to 2026E [1] - The Western fast-food industry in China is resilient, with KFC holding a 16.4% market share in 2023 and Pizza Hut leading the pizza market with a 37.4% share in 2021 [1] - 百胜中国's competitive advantages include strong brand recognition, a robust supply chain, and digital transformation, which have improved operational efficiency and customer loyalty [1] - Future growth drivers include store miniaturization, expansion into lower-tier cities, and increased profitability through optimized store models [1] Company Overview - 百胜中国 operates six brands, including KFC, Pizza Hut, and Lavazza, with a total of 15,022 stores as of 1Q24 [1] - KFC and Pizza Hut are the main revenue contributors, accounting for 75% and 21% of total revenue in 2023, respectively [1] - The company has a strong digital presence, with 89% of sales coming from digital orders as of 1Q24 [1] - 百胜中国 has a well-established supply chain, with 33 logistics centers and strategic investments in key suppliers like Sunner Development [1] Industry Analysis - The Western fast-food market in China reached RMB 368.8 billion in 2023, accounting for 7.0% of the total餐饮 market, up 1.7 percentage points from 2016 [1] - The industry has a high连锁化率 due to fewer SKUs, less regional taste variation, and mature supply chains [1] - KFC leads the Western fast-food market with a 16.4% market share in 2023, while Pizza Hut dominates the pizza market with a 37.4% share in 2021 [1] Competitive Advantages - **Brand Strength**: KFC and Pizza Hut have been in China for over 30 years, with 440 million and 150 million members, respectively, as of 2023 [1] - **Product Innovation**: The company launches over 500 new products annually and has a "Billion Dollar Club" for high-performing products [1] - **Supply Chain**: 百胜中国 has a fully integrated supply chain, from采购 to餐厅, with 33 logistics centers and strategic investments in key suppliers [1] - **Digital Transformation**: The company has a strong digital ecosystem, with 89% of sales来自 digital orders as of 1Q24, and has significantly reduced labor costs through数字化 [1] Future Growth Drivers - **Store Miniaturization**: KFC and Pizza Hut have introduced smaller store formats, reducing initial investment by RMB 300,000 and RMB 400,000, respectively, and improving cash利润率 by 2-3 percentage points [1] - **Expansion**: The company plans to increase store density in higher-tier cities and expand into lower-tier markets, with potential for KFC and Pizza Hut to grow their store counts by 74.0% and 82.5%, respectively, by 2026 [1] - **Profitability Improvement**: With the increasing proportion of smaller, more profitable stores, the company expects further improvements in store-level profitability [1] Financial Projections - 百胜中国 is expected to achieve net profits of $850 million, $940 million, and $1.03 billion from 2024E to 2026E, with a CAGR of 10.3% [1] - The company's PE ratio is projected to be 12.9X, 11.0X, and 9.5X for 2024E, 2025E, and 2026E, respectively [1] - Based on a 50% weighting of PE and DCF valuation methods, the target price is set at HK$352.75, leading to a "Buy" rating [1]

华福证券 餐饮 2024年06月12日 公 司 百胜中国（ ） 09987.HK 买入（首次评级） 研 究 国内连锁餐饮龙头，多措并举带动管理能力提升 当前价格： 270.20港元 目标价格： 392.95港元 投资要点： 基本数据  快餐业龙头，多品牌协同共筑高质量发展。公司旗下品牌众多包括肯 总股本/流通股本(百万股) 388.21/388.21 德基，必胜客，塔可钟等知名餐饮品牌。截至24年3月份公司所经营门店数 流通市值(百万港元) 104,894.64 每股净资产(港元) 116.58 量达到15022家，公司快餐品牌深耕国内市场多年，门店遍布全国，具有强 资产负债率(%) 41.67 一年内最高/最低价(港元) 485.00/260.20 大的市场基础和客户需求粘性，品牌势能为公司业绩韧性提供支撑，23年 一年内股价相对走势 公司实现业绩恢复性增长，其中营收同比+14.72%；归母净利润同比+90%。 公 司  餐饮行业复苏红利看头部，连锁化率提升公司综合竞争力。根据国家 深 统计局数据，23年全国餐饮收入52890亿元，同比上升20.4%，疫后消费复 度 苏动力足，餐饮大赛道具备强经济韧性， ...

[Table_MainInfo] 公司研究/旅游服务业/酒店、餐馆 证券研究报告 百胜中国（9987）公司季报点评 2024年05月28日 [Table_InvestInfo] 投资评级 优于大市 维持 1Q24 收入增 1%，同店恢复度环比提升 股票数据 [Table_Summary] 5[T月a 2b 7le日_收S盘to价c（kI港n元fo）] 281.0 投资要点： 52周股价波动（港元） 259.25-480.73 总股本/流通股（百万股） 389/12 百胜中国4月30日发布2024年第一季度业绩。公司1Q24实现收入29.6亿美 总市值/流通市值（亿港元） 1094/34 元，同比增长1%（剔除外币换算影响同比增加7%，符合前瞻0%-10%的预期）； 相关研究 经调整经营利润3.74亿美元，同比下降11%；经调整净利润2.87亿美元，同 [《Ta4bQle23_R收ep入or增tIn1fo9%] ，开店超目标》 比下降2%（剔除外币换算影响同比增长4%，符合前瞻-5%-5%的预期）。经 2024.02.08 营利润率为12.6%，同比降1.7pct，管理费用的减少部分抵消了餐厅利润率降 《3Q2 ...

M N 2 May 2024 CMB International Global Markets | Equity Research | Company Update Yum China (9987 HK) 2Q24E is tough but turnaround is still possible o The 1Q24 results of Yum China were satisfactory, however the catering industry Target Price HK$348.13 remain subdued and hence we have become more cautious about YUMC’s (Previous TP HK$384.17) 2Q24E outlook. But since the turnaround in 2H24E should still be intact, plus Up/Downside 18.3% the massive buyback and dividend payment, we continue to maintain BUY. ...

股 票 研 究 [Table_industryInfo] 社会服务业 [ Table_Main[百I Tnaf 胜bol]e 中_Ti国tle]（ 9987） [评Tab级le_：Inv est] 增持 当前价格（港元）： 294.40 高基数下同店略降，灵活店型拓店加速 2024.05.02 海 ——百胜中国2024 年一季报点评 [ 交Ta易bl数e_M据a rket] 外 52周内股价区间（港元） 264.00- 刘越男(分析师) 宋小寒(研究助理) 504.00 公 021-38677706 010-83939087 当前股本（百万股） 391 司 liuyuenan@gtjas.com songxiaohan026736@gtjas.co 当前市值（百万港元） 114,970 （ 证书编号 S0880516030003 mS0 880122070054 中 本报告导读： [ Table_PicQuote] 52周内股价走势图 公司作为餐饮龙头同店表现相对稳定，中长期门店扩张驱动业绩增长，通过回购及分 国 香 红提高股东回报。 百胜中国 恒生指数 摘要： 港 4% [T able投_S资um建m议a ...