Investment Rating - The report maintains a "Buy" rating for Yum China, indicating a positive outlook for the company's stock performance [5]. Core Views - Yum China demonstrated strong operational efficiency and cost control, with a Q3 restaurant profit margin of 17%, stable year-on-year [2]. - The company plans to increase its shareholder return by 50% from 3billionto4.5 billion for the years 2024-2026, with a target of returning 1.5billiontoshareholdersin2024[4].−Thecompanyisfocusingonexpandingitsfranchisemodel,aimingtoincreasetheproportionoffranchisestoresfrom15−203.07 billion, a year-on-year increase of 5%, with a system sales growth of 4% [1]. - The operating profit for Q3 was 371million,reflectingayear−on−yearincreaseof15297 million, up 22% year-on-year, while the Non-GAAP net profit also stood at 297million,markinga20902 million, 978million,and1.05 billion, respectively, with corresponding EPS of 2.37,2.57, and $2.76 [4][9]. - The report projects a P/E ratio of 21, 19, and 18 for FY2024, FY2025, and FY2026, respectively, based on the closing price on November 5 [4][9].
