Investment Rating - The investment rating for the company is "Buy" [1][6]. Core Insights - The report highlights that the competition in the food delivery sector has increased rider costs, but the company's efficiency optimization has led to an improvement in profit margins [2]. - The company is expected to return $3 billion to shareholders through dividends and buybacks from 2025 to 2026, with projected EPS growth of 10%/15%/11% for 2025-2027 [10]. - The target price is set at 444 HKD, based on a PE ratio of 22 times for 2025, which is above the industry average [10]. Financial Summary - Total revenue is projected to grow from 10,978 million HKD in 2023 to 13,347 million HKD in 2027, reflecting a CAGR of approximately 6.3% [4]. - Net profit is expected to increase from 827 million HKD in 2023 to 1,096 million HKD in 2027, with a significant growth of 87.1% in 2023 [4]. - The company’s PE ratio is forecasted to decrease from 20.58 in 2024 to 13.72 in 2027, indicating improving valuation metrics [4]. Operational Performance - In Q2 2025, the company reported revenue of $2.787 billion, a year-on-year increase of 4%, with a core operating profit margin of 10.9% [10]. - Same-store sales increased by 1% year-on-year in Q2 2025, with KFC and Pizza Hut showing positive growth [10]. - The total number of stores reached 16,978, with a net increase of 336 stores in Q2 2025, indicating a 10% year-on-year growth [10]. Profitability Metrics - The restaurant profit margin improved to 16.1% in Q2 2025, up 0.6 percentage points year-on-year, driven by favorable raw material prices and operational efficiencies [10]. - KFC's restaurant profit margin was 16.9%, while Pizza Hut's was 13.3% in Q2 2025, reflecting operational improvements [10].
百胜中国（09987）：2025Q2 业绩点评：同店销售正增，利润率持续优化