Investment Rating - The report maintains a "Buy" rating for Yum China (9987.HK) [1] Core Insights - In Q2 2025, the company achieved revenue of $2.8 billion, a year-on-year increase of 4%, and adjusted net profit of $215 million, also up 1% year-on-year [5][6] - Same-store sales turned positive for the first time since Q1 2024, with a 1% year-on-year increase, driven by a 5% increase in KFC and a 3% increase in Pizza Hut [6] - The company plans to accelerate store openings in the second half of 2025, targeting a net increase of 1,600 to 1,800 stores for the year [7] Revenue Performance - The company reported a same-store sales growth of 1% in Q2 2025, with KFC and Pizza Hut showing respective growth rates of 1% and 2% [6] - KFC's average ticket price increased by 1% year-on-year, while Pizza Hut's decreased by 13% due to a focus on more cost-effective products [6] Store Expansion - In Q2 2025, the company added 336 new stores, bringing the total to 16,978 [7] - The company has adjusted its capital expenditure guidance for 2025 to $600-700 million, down from $700-800 million [7] Profitability Improvement - The restaurant profit margin improved to 16.1% in Q2 2025, up 0.6 percentage points year-on-year [8] - The company expects stable profit margins for KFC and slight improvement for Pizza Hut in the second half of 2025 [8] Future Outlook - The company raised its target for the number of KFC coffee shops to 1,700 by the end of 2025, reflecting strong sales growth in new product categories [9] - The report projects adjusted net profit for 2025-2027 to be $940 million, $1.002 billion, and $1.074 billion respectively, with corresponding EPS of $2.55, $2.71, and $2.91 [10][11]
百胜中国（09987）：25Q2业绩点评：25Q2同店销售额同比增速转正，利润率同比改善