Core Viewpoint - Daiwa's report indicates that Yum China (09987) stock price rose by 11% on February 5, driven by better-than-expected Q4 2025 performance and a shift in investor perception regarding competition and pricing in the Chinese restaurant industry [1] Group 1: Company Performance - Yum China's Q4 2025 same-store sales exceeded expectations, indicating a recovery in consumer confidence and a more rational pricing environment in the industry [1] - The management forecasts a slight year-on-year increase in operating profit margin for 2026, suggesting potential for margins to surpass market expectations as competition improves [1] Group 2: Market Outlook - The increase in stock price is attributed to a change in investor understanding of the competitive and pricing landscape in the Chinese dining sector [1] - Daiwa maintains a "Buy" rating for Yum China, raising the target price to HKD 520, reflecting positive sentiment towards the company's future performance [1]
大和：升百胜中国目标价至520港元 重申“买入”评级