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]
大和：百胜中国(09987)强劲执行力推动营运利润超预期 评级“买入”