Group 1: Stock Performance and Market Influence - On November 25, US stocks closed higher, driven by a significant rise in the stock market and robust performance of LX.US in Q3 2025, with the stock increasing by 8.15% to close at $3.75, with a trading volume of $15.41 million [1] - The overall US stock indices rose, with the Dow Jones up 0.44%, Nasdaq up 2.69%, and S&P 500 up 1.55% [1] - Chinese concept stocks generally rose, with notable increases in various companies, including a 2.82% rise in the Nasdaq Golden Dragon China Index [1] Group 2: Financial Performance - LX.US reported a 90+ delinquency rate that decreased by 15 basis points quarter-over-quarter and 74 basis points year-over-year, indicating a steady improvement in asset quality [2] - The net profit margin for LX.US was 2%, with a quarter-over-quarter increase of 9 basis points and a year-over-year increase of 92 basis points, marking seven consecutive quarters of improvement [2] - Significant growth was observed in the installment e-commerce and personal consumption credit sectors, with transaction volume in consumer goods increasing by 58.5% quarter-over-quarter and 133.8% year-over-year [2] Group 3: Shareholder Returns and Corporate Actions - LX.US announced a dividend of $0.194 per ADS, representing a 76% increase compared to the second half of 2024, and has raised the dividend payout ratio from 25% to 30% of net profit [3] - The company has executed over half of its $50 million stock repurchase plan and $10 million management buyback plan, which is expected to enhance shareholder return rates to approximately 14% [3] - The current PE ratio is below 4 times, and the PB ratio is 0.41 times, indicating a low valuation compared to peers [3]

Core Viewpoint - Jianyin International has raised the target price for Yum China (09987, YUMC.US) by 2.5% to HKD 453.2 and USD 58.1, maintaining an "outperform" rating [1] Group 1: Company Strategy - Yum China announced a new RGM 3.0 strategy focused on resilience, growth, and competitive advantage during its investor day on November 17, 2025, in Shenzhen [1] - The company has set an ambitious expansion plan aiming to exceed 25,000 stores by fiscal year 2028 and over 30,000 stores by fiscal year 2030 [1] - The expansion strategy is based on diversified brands, segmented products and services, and tailored store models to meet different customer needs [1] Group 2: Financial Projections - Jianyin International has increased its core earnings forecast for fiscal year 2026 by 3%, primarily due to improved POS growth expectations [1] - The target price for U.S. and Hong Kong stocks has been adjusted while maintaining a price-to-earnings ratio of 22 times for fiscal year 2026 [1] - Yum China plans to allocate 100% of its free cash flow to shareholders starting from fiscal year 2027, with an expected average annual return of USD 900-1,000 million for fiscal years 2027-2028, translating to an approximate 6% annualized shareholder return [1]

Group 1 - The core viewpoint of the report is that Beike-W (02423) is expected to achieve adjusted net profit of 7.7 billion yuan and 10.3 billion yuan in 2025 and 2026, representing year-on-year growth of 6% and 34% respectively, with a target price of 59.32 HKD/share and 22.86 USD/share based on a 26x PE ratio for 2025 [1] - Beike's stock-based compensation (SBC) for 2024 is projected to be 2.7 billion yuan, accounting for 38% of the adjusted net profit of 7.2 billion yuan, with a gradual decrease in SBC expected in the following years [1][3] - The core management team received a significant incentive in 2022, resulting in 3.6 billion yuan of deferred expenses to be amortized over five years, which has led to higher reported compensation figures [2] Group 2 - Beike's SBC is expected to decrease to 1.94 billion yuan, 1.78 billion yuan, and 1.47 billion yuan in 2025, 2026, and 2027 respectively, indicating a trend of declining stock-based compensation [3] - When comparing Beike to other internet platforms like JD.com, Meituan, and Tencent, Beike has a lower proportion of employee incentive value relative to adjusted net profit, demonstrating better control over stock-based compensation [4] - Beike has provided a total shareholder return rate of 5.5%, which is significantly higher than its peers, indicating a strong commitment to returning value to shareholders during its growth phase [4]