Investment Rating - The report maintains a "Buy" rating for Yum China (9987.HK) [1] Core Insights - In Q2 2025, the company achieved revenue of $2.8 billion, a year-on-year increase of 4%, and adjusted net profit of $215 million, also up 1% year-on-year [5][6] - Same-store sales turned positive for the first time since Q1 2024, with a 1% year-on-year increase, driven by a 5% increase in KFC and a 3% increase in Pizza Hut [6] - The company plans to accelerate store openings in the second half of 2025, targeting a net increase of 1,600 to 1,800 stores for the year [7] Revenue Performance - The company reported a same-store sales growth of 1% in Q2 2025, with KFC and Pizza Hut showing respective growth rates of 1% and 2% [6] - KFC's average ticket price increased by 1% year-on-year, while Pizza Hut's decreased by 13% due to a focus on more cost-effective products [6] Store Expansion - In Q2 2025, the company added 336 new stores, bringing the total to 16,978 [7] - The company has adjusted its capital expenditure guidance for 2025 to $600-700 million, down from $700-800 million [7] Profitability Improvement - The restaurant profit margin improved to 16.1% in Q2 2025, up 0.6 percentage points year-on-year [8] - The company expects stable profit margins for KFC and slight improvement for Pizza Hut in the second half of 2025 [8] Future Outlook - The company raised its target for the number of KFC coffee shops to 1,700 by the end of 2025, reflecting strong sales growth in new product categories [9] - The report projects adjusted net profit for 2025-2027 to be $940 million, $1.002 billion, and $1.074 billion respectively, with corresponding EPS of $2.55, $2.71, and $2.91 [10][11]

Core Viewpoint - Daiwa's report indicates that Yum China (09987) achieved a same-store sales growth (SSSG) of 1% in Q2 2025, with KFC contributing 1% and Pizza Hut 2%, reflecting a solid performance [1] Group 1: Financial Performance - Operating profit increased by 14% year-on-year, surpassing market consensus of 8% [1] - Earnings per share (EPS) grew by 5%, while adjusted EPS (excluding Meituan-W (03690) investment and foreign exchange impacts) maintained a 15% year-on-year growth rate [1] Group 2: Brand Performance - KFC continues to show resilience, with a notable point being its partnership with JD.com for delivery services starting in July, which is expected to bring additional traffic in Q3 [1] Group 3: Future Outlook - Management reiterated the annual store opening guidance, with expectations that improved execution could accelerate system sales growth supported by faster contributions from new stores [1] - Yum China's EPS is projected to grow by 5% year-on-year, and if excluding foreign exchange and market value adjustments, the annual growth is expected to be 15% [1] - The target capital return for 2025 to 2026 is set at $3 billion, representing 8% of the market value [1]

管理层重申了全年开店指引，大和表示，若执行力提升，系统销售增长可加速，受到更快的新门店贡献 支撑。因此，下半年门店开设将是主要焦点。大和预计，百胜中国每股盈利同比增5%，若不计外汇及 市值调整影响，则年增15%。2025至2026年目标资本回报定为30亿美元，占市值8%。 大和发布研报称，百胜中国(09987)于2025年第二季报告同店销售增长(SSSG)1%，其中肯德基(KFC)为 增长1%，必胜客(Pizza Hut)增2%，认为这是一个稳健的表现。预期第三季的持续改善(外送量提升、门 店开设加速、正向营运杠杆)将进一步支撑股价，对该股评级为"买入"。 大和认为，百胜中国主要亮点在于成本优化，其营运利润同比增14%，高于市场共识的8%。每股盈余 (EPS)增长5%，而调整后每股盈利(不含美团-W(03690)投资及外汇影响)保持15%同比增率。大和表示， 按品牌来看，肯德基持续展现韧性，需注意的是肯德基仅在7月加入京东外送，认为与京东外送的合作 预计将在第三季带来额外流量。 ...

Investment Rating - The report maintains a "Buy" rating for Yum China (9987.HK / YUMC.US) with a target price of HKD 476.9, indicating a potential upside of 36% from the current stock price of HKD 370.8 [1][5]. Core Insights - In Q2 2025, Yum China's total revenue increased by 4% year-on-year to USD 2.8 billion, with system sales also growing by 4%. Operating profit rose by 14% to USD 304 million, exceeding market expectations. Net profit attributable to shareholders grew by 1% to USD 215 million, primarily impacted by an investment loss of USD 18 million [1][2]. - The company experienced a positive same-store sales growth of 1% for the first time since last year, driven by improved efficiency and a reduction in expense ratios due to same-store growth. Additionally, the recent competition in the food delivery market contributed to a 22% increase in delivery revenue, which now accounts for 45% of total revenue [2][5]. - KFC's revenue grew by 4.1% to USD 2.09 billion, with same-store sales also increasing by 1%. The restaurant's profit margin improved to 16.9%, benefiting from favorable raw material prices and operational efficiencies [3]. - Pizza Hut's operating profit increased by 16% to USD 46 million, with a profit margin of 8.3%, marking a significant improvement. The company plans to maintain its store opening guidance for the year, targeting 1,600 to 1,800 new stores [4][5]. Financial Summary - For the first half of 2025, Yum China reported total revenue of USD 4.34 billion, a 2% increase year-on-year, and a net profit of USD 510 million, also up by 1% [2]. - The forecast for net profit attributable to shareholders is USD 944.6 million for 2025, USD 1.015 billion for 2026, and USD 1.05 billion for 2027, with corresponding EPS of HKD 20.07, HKD 21.57, and HKD 22.24 [5][9]. - The company’s financial metrics indicate a projected revenue growth rate of 2.89% for 2025 and 6.98% for 2026, with a net profit margin of 8.12% for 2025 [9][10]. Valuation Analysis - The report employs both comparable company analysis and DCF methods for valuation, suggesting a target price of HKD 476.9 based on a 23x PE ratio for 2025, with an estimated EPS of HKD 20.07 [11][12]. - The DCF valuation estimates a reasonable market capitalization of HKD 181.9 billion, translating to a stock price of HKD 492.3 [11][14].

智通财经APP获悉，高盛发布研报称，百胜中国(09987)第二季盈利超预期，相信市场可能在等待第三季 同店销售前景在外送平台补贴增加下更正面的基调。该行指，了解百胜中国审慎的销售指引是基于2024 年第三季的各种成功促销活动、平台补贴政策、多变的宏观环境、管理层平衡商机与定价观点的策略， 相信过往的往绩记录仍能让公司有健康的增长前景。维持"买入"评级及目标价447港元。 ...

Core Performance Highlights - Yum China reported a 14% year-on-year increase in operating profit, with an operating margin of 10.9% and total revenue reaching $2.8 billion, a 4% increase year-on-year, reinforcing its leadership in the Chinese dining market [1][2] - The company added 336 new stores in the quarter, bringing the total to 16,978, with KFC and Pizza Hut stores numbering 12,238 and 3,864 respectively, enhancing market coverage and brand influence [2][4] Brand Performance and Innovation - KFC demonstrated strong growth with innovative products like the "Crazy Spicy Chicken Burger," leading to over a 30% increase in sales for the spicy product line, and expanded its coffee business with approximately 300 new stores, raising the 2025 target from 1,500 to 1,700 stores [4][5] - Pizza Hut achieved a 2% increase in same-store sales and a significant 17% increase in same-store transaction volume, attracting a broader consumer base through product upgrades and innovative marketing [5] Digital Strategy and AI Integration - The proportion of delivery sales in total restaurant revenue increased from 38% to approximately 45% year-on-year, driven by exclusive offers and membership benefits through proprietary channels and strategic partnerships with third-party platforms [6] - The company hosted its first "AI Day" and established a 100 million RMB innovation fund to encourage employees to embrace generative AI and robotics, marking a shift in AI from a supportive tool to a core strategic element [6]

Core Viewpoint - The report from Credit Lyonnais indicates that Yum China’s Q2 performance met expectations, with significant improvements in profit margins [1] Financial Performance - Restaurant profit margin increased by 60 basis points, while operating profit margin rose by 100 basis points [1] - KFC and Pizza Hut's takeout sales grew by 25% and 15% year-on-year, respectively [1] - Same-store sales increased by 1% for KFC and 2% for Pizza Hut, attributed to Yum China's strategic restraint in promotional activities [1] Profitability Outlook - Credit Lyonnais views Yum China as the most disciplined company in profit protection within its coverage, suggesting that there is still room for profit margin improvement regardless of subsidy continuation [1] - The target price for Yum China is maintained at $56 with an "outperform" rating [1]

Core Viewpoint - The company, Yum China, has demonstrated strong growth and profitability amidst challenges in the restaurant industry, achieving record operating profit and profit margins in the second quarter [1] Group 1: Financial Performance - In Q2, Yum China's total revenue reached $2.8 billion, a year-on-year increase of 4% [1] - Operating profit margin improved by 100 basis points to 10.9% [1] - The company added 336 new stores in Q2, bringing the total to 16,978 [1] - Same-store sales and system sales both showed positive growth, with same-store sales achieving growth for ten consecutive quarters [1] Group 2: Innovation and Consumer Engagement - The company activated consumer demand through product and model innovation, leveraging emotional value and IP collaborations [2] - During Children's Day, KFC and Pizza Hut launched IP collaboration meals, selling over 4 million units [2] - KFC's mini-town model reduced investment thresholds to $500,000, allowing expansion into over 300 new towns [2] - The introduction of unique beverage products in KFC's coffee segment has significantly contributed to sales [2] Group 3: Operational Efficiency and Digital Transformation - Yum China is advancing its digital capabilities, entering the "AI + dining" era with human-machine collaboration [4] - The company has established end-to-end digital capabilities, ensuring visibility across the entire value chain [4] - The launch of the intelligent operational tool "Q Rui" aims to enhance store efficiency by covering over 20 key operational scenarios [4][5] Group 4: Strategic Partnerships and Shareholder Returns - The company prioritizes partnerships with large franchisees while maintaining high management standards to ensure brand stability [6] - Yum China plans to return $536 million to shareholders in the first half of 2025 and approximately $3 billion from 2025 to 2026, averaging 9% of market capitalization annually [6] - The company's ability to maintain steady growth, profitability, and high returns reflects its long-term value [6]

Investment Rating - The report maintains a "Buy" rating for the company [7][5]. Core Views - The company reported strong same-store performance in Q2 2025, with operating profit exceeding expectations, showcasing resilience as a market leader [1][2]. - The company aims to open 1,600 to 1,800 new stores in 2025, with a focus on increasing the proportion of franchise stores [4][3]. - The target price is set at HKD 444.80 or USD 56.66, reflecting a slight adjustment in revenue and net profit forecasts for 2025-2027 [5][8]. Financial Performance - Q2 2025 revenue reached USD 2.787 billion, a year-over-year increase of 4%, while the first half of 2025 revenue was USD 5.768 billion, up 2% [1]. - Q2 operating profit was USD 304 million, a 14% increase year-over-year, with an operating margin of 10.9% [2][1]. - The company achieved a net profit of USD 215 million in Q2, with a net profit margin of 7.7% [1]. Store Expansion and Capital Expenditure - As of June 30, 2025, the company had 16,978 stores, with 336 new stores opened in the quarter, achieving the target for new franchise store openings [3][4]. - The capital expenditure per store has been optimized, with KFC and Pizza Hut's CAPEX reduced to USD 140,000 and USD 110,000-120,000 respectively [3][4]. Future Outlook - The company expects to maintain steady same-store sales growth in the second half of 2025, supported by cost structure optimization and ongoing store type iterations [1][4]. - The forecast for operating profit margin is a moderate increase for the full year, with expectations for improved free cash flow starting in 2025 due to reduced capital expenditures [4][5].

高盛发表报告指，百胜中国第二季盈利超预期，了解百胜中国审慎的销售指引是基于2024年第三季的各 种成功促销活动、平台补贴政策、多变的宏观环境、管理层平衡商机与定价观点的策略，相信过往的往 绩记录仍能让公司有健康的增长前景。该行维持对其"买入"评级及目标价447港元。 ...