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 280 million (+12% excluding currency impact) and net profit attributable to shareholders at 994 million to shareholders through dividends and buybacks in 1H24, with plans to distribute 1.25 billion in buybacks for the full year 2024 [1] Financial Performance Summary - Revenue is projected to grow from 13.483 billion in 2026E, with a CAGR of 8.78% [3] - Net profit attributable to shareholders is expected to increase from 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]
百胜中国：Q2降本增效，利润超预期