Investment Rating - The report maintains a "Buy" rating for Yum China (09987.HK) [1] Core Insights - The company reported Q4 2025 revenue of $2.823 billion, a year-on-year increase of 9%, with operating profit at $187 million, up 25%, and net profit attributable to shareholders at $140 million, up 24% [1] - For the full year 2025, total revenue reached $11.797 billion, a 4% increase year-on-year, with operating profit of $1.290 billion, up 11%, and net profit attributable to shareholders at $929 million, a 2% increase [1] - The company returned $539 million to shareholders in Q4 and a total of $1.5 billion for the year [1] Financial Performance Summary - Same-store sales continued to show positive growth, with a full-year increase of 1% and Q4 growth of 3%, exceeding expectations [8] - The total number of restaurants reached 18,101 by the end of 2025, with a net addition of 1,706 restaurants during the year [8] - The overall profit margin for Q4 was 13.0%, with KFC and Pizza Hut margins at 14.0% and 9.9% respectively, benefiting from reduced costs [8] - The company plans to add over 1,900 new stores in 2026, with a target of exceeding 20,000 total stores [8] - The company aims to maintain high shareholder returns, with a planned return of $1.5 billion in 2026 [8] Financial Projections - Revenue projections for 2026, 2027, and 2028 are $12.4 billion, $13.011 billion, and $13.604 billion respectively, with growth rates of 5.1%, 4.9%, and 4.6% [4] - Net profit projections for the same years are $1.026 billion, $1.105 billion, and $1.181 billion, with growth rates of 10.5%, 7.7%, and 6.9% respectively [4] - The target price for 2026 is set at HKD 477.03, based on a PE ratio of 21 times [4]
百胜中国（09987）：2025年第四季度及全年财报点评：同店销售延续正增长，新店态贡献增量