Investment Rating - The investment rating for the company is "Buy" and is maintained [2] Core Views - The company achieved a total revenue of $2.68 billion in Q2 2024, a year-on-year increase of 1%, with operating profit reaching $266 million, up 4% year-on-year, both setting new records for Q2 [1] - The company continues to expand its store network, with a total of 15,423 stores as of June 30, 2024, including 10,931 KFC and 3,504 Pizza Hut locations [1] - System sales increased by 4% year-on-year in Q2 2024, driven by an 8% contribution from net new stores [1] - Same-store sales have declined for two consecutive quarters, with Q2 2024 showing a decrease of 4% overall, 3% for KFC, and 8% for Pizza Hut [1] - The company reported a significant increase in delivery sales, which grew by 11% year-on-year, with digital orders accounting for 90% of restaurant revenue [1] - The company is focused on optimizing its menu and processes, leveraging automation and AI technology to enhance operational efficiency [1] - The management has committed to returning approximately $2.49 billion to shareholders in Q2 2024 through stock buybacks and cash dividends, with a total of nearly $1 billion returned year-to-date [1] Financial Summary - The company projects revenues of $11.15 billion, $12.00 billion, and $13.00 billion for 2024, 2025, and 2026 respectively, with net profits of $847 million, $917 million, and $1.007 billion for the same years [3][4] - The current price-to-earnings (P/E) ratios are projected to be 15x, 14x, and 13x for 2024, 2025, and 2026 respectively [1][4] - The company has a total market capitalization of approximately HKD 101.38 billion [2]
百胜中国：2024Q2门店持续扩张，收入利润创季度新高