Bank of America Securities released a research report, placing Yum China (09987.HK) (YUMC.US) as a "first in, first out" stock pick, believing it is one of the few stocks in the Chinese consumer industry that is less likely to face profit downturn risks. Based on same-store sales performance, margin improvement, strengthening of the Chinese yuan exchange rate, share repurchases, and fair value gains from holding shares in Meituan (03690.HK), Bank of America Securities has raised its earnings per share forecast for Yum China by 3% and 2% for the next two years, and increased the target price from 323 yuan to 380 yuan.

Bank of America predicts that Yum China's same-store sales decline in the third quarter will narrow to between 2% and 3%, compared to a 4% decrease in the second quarter, with expectations of a recovery in same-store sales growth in the fourth quarter. The bank also forecasts a 12% increase in operating profit for the third quarter, with net profit expected to grow by over 40%, including the income brought by Meituan.