Jingu Financial News | Everbright Securities issued a research report stating that Yum China (09987) achieved revenue of 3.07 billion US dollars in 24Q3, a year-on-year increase of +5% (or +4% at a fixed exchange rate); achieved a net income attributable to the mother of 0.297 billion US dollars, a year-on-year increase of +22% (or +21% at a fixed exchange rate).

The bank stated that in terms of store operation, in 24Q3, system sales increased by +4% year-on-year (KFC/Pizza Hut increased by +6% / +2% respectively); same store sales decreased by -3% year-on-year (KFC/Pizza Hut decreased by -2% / -6% respectively). Among them, KFC/Pizza Hut's same-store transaction volume increased by +1% / +4% year-on-year. The decline in same-store sales in 24Q3 narrowed compared to the previous quarter (same-store sales decreased by -4% year-on-year in 24Q2), with KFC mainly reducing the decline in average customer price year-on-year and gradually rationalizing promotional efforts; Pizza Hut mainly expanding the growth rate of customer traffic year-on-year, attracting consumers who value cost-effectiveness with low-priced pizzas, meals for one person, and increasing customer traffic. In terms of new store openings, there was a net addition of 1217 stores in the first three quarters of 24; of which 438 stores were added in 24Q3 (KFC / Pizza Hut added +352 / +102 stores respectively), the overall speed of new store openings accelerated compared to 24Q2 (net addition of 401 stores in 24Q2); the total number of restaurants at the end of the period was 15861 (KFC/Pizza Hut were 11283/3606 respectively).

Considering the rapid improvement in operating efficiency, the bank raised the company's net profit forecast for 2024-2026 to 0.895 / 0.957 / 1.051 billion US dollars (an increase of 4% / 3% / 2% respectively). The current stock price corresponds to a PE ratio of 21x / 19x / 18x for 2024-2026, maintaining a "buy" rating.