Intelligent Finance and Economics APP learned that CCB International released a research report stating that the dining industry has strong pro-cyclical characteristics, and policy stimulus is bullish for Yum China (09987) and other related companies to increase their valuations. Looking ahead, if policies smoothly transmit to the consumer end after implementation, domestic dining companies are expected to see improvements in revenue and profits. The bank prefers Yum China, with a 'buy' rating and anticipates a 9% compound annual growth rate in EBITDA for the group over three years.

CCB International stated that as a leading domestic chain dining company, Yum China has a prominent brand appeal in the mass market with a steady pace of expansion. The bank estimates that the company's system sales in the third quarter of this year (excluding exchange rate changes) should increase by a high single-digit percentage year-on-year, and the operating profit margin is expected to improve by nearly 0.5 percentage points year-on-year. Maintaining the full-year target of opening 1500 to 1700 new stores and a capital expenditure plan of $0.7 billion to $0.85 billion.