YUM CHINA HOLDINGS INC.(09987.HK):DIVERSIFIED STORE MODELS
YUM CHINA HOLDINGS INC.(09987.HK):DIVERSIFIED STORE MODELS
New store models. The side-by-side KCOFFEE cafe store has lower operating cost by sharing the same kitchen with a KFC store. The number of this model increased from 100 in March to c.300 in July and is expected to reach 500-600 by end-2024. Pizza Hut WOW store model, featuring "Simpler Operations, Good Variety and Excellent Value-for-money", was introduced in May, and the number exceeded 100 by July and is expected to reach 200 by year end.Yum China reported 2Q24 revenue of US$2.68bn (+1% YoY) and core operating profit of US$275m (+12% YoY), in line with our expectation. We maintain 2024E EPS forecast of US$2.14, 2025E forecast of US$2.36, and 2026E forecast of US$2.56. Considering the consumption sentiment, we lower our valuation, lower target price from HK$450 to HK$408, and with 61% upside potential, we maintain Buy rating.
百勝中國報告2Q24的營業收入爲26.8億美元（同比增長1%），核心營業利潤爲2.75億美元（同比增長12%），符合我們的預期。我們維持2024年預期每股收益爲2.14美元，2025年預期爲2.36美元，2026年預期爲2.56美元。考慮到消費情緒，我們降低了估值，將目標價從450港元降至408港元，並保持買入評級，上漲潛力爲61%。
Healthy store payback. In 2Q24, the company opened a net of 401 new stores. The total number of stores reached 15,423, including 10,931 KFC outlets, 3,504 Pizza Hut outlets, and 988 outlets for other brands. In 1H24, 59% of KFC's new stores were opened in lower-tier cities (defined as third to sixth-tier cities), with 56% of the total stores located in these cities. 21% of KFC's new stores and 11% of total stores were franchise stores. For Pizza Hut, 57% the new stores and 45% of the total stores were located in lower-tier cities. 3% of Pizza Hu's new stores and 5% of total stores were franchise stores. The payback period has been maintained at 2 years for KFC, while Pizza Hut's payback period has been shortened from 3 years to 2-3 years.
健康的門店回報。在2Q24期間，該公司新增了淨401家門店，門店總數達到15423家，包括10931家肯德基門店，3504家必勝客門店和988家其他品牌門店。在1H24期間，59%的肯德基新門店位於下沉市場（定義爲第三至第六線城市），56%的總門店位於這些城市。21%的肯德基新門店和11%的總門店是特許經營的。至於必勝客，57%的新門店和45%的總門店位於下沉市場。3%的必勝客新門店和5%的總門店是特許經營的。肯德基的回報期保持在2年，而必勝客的回報期從3年縮短至2-3年。
Resilient same-store sales. During 2Q24, KFC's total system sales increased 5% YoY, while same-store-sales growth (sssg) decreased 3% YoY, with transaction up 4% and average ticket price down 7%. The average ticket price was Rmb37, versus Rmb35 in 2Q19. Pizza Hut's total system sales increased 1% YoY, while sssg decreased 8% YoY, with transaction up 2% and average ticket price down 9%. The average ticket price was Rmb88, which declined from Rmb115 in 2Q19. The decrease in average ticket price was in line with the strategy to target mass market.
有彈性的同店銷售額。在2Q24期間，肯德基的總銷售額同比增長5%，而同店銷售額同比下降3%，交易量增長4%，平均交易金額下降7%。平均交易金額爲人民幣37元，而2Q19爲人民幣35元。必勝客的總銷售額同比增長1%，而同店銷售額同比下降8%，交易量增長2%，平均交易金額下降9%。平均交易金額爲人民幣88元，較2Q19的人民幣115元下降。平均交易金額的下降符合針對大衆市場的策略。
New store models. The side-by-side KCOFFEE cafe store has lower operating cost by sharing the same kitchen with a KFC store. The number of this model increased from 100 in March to c.300 in July and is expected to reach 500-600 by end-2024. Pizza Hut WOW store model, featuring "Simpler Operations, Good Variety and Excellent Value-for-money", was introduced in May, and the number exceeded 100 by July and is expected to reach 200 by year end.
新門店模型。並排的KCOFFEE咖啡店在與KFC店共用廚房的同時降低了運營成本。這種模型的數量從3月份的100家增加到7月份的約300家，並預計到2024年底將達到500-600家。Pizza Hut WOW店模型於5月推出，以"簡單運營、好品種和超值price"爲特色，到7月份的數量超過100家，並預計在年底前將達到200家。
Maintain Buy. We like the company's innovation ability, diversified store types, as well as an industry-leading supply chain management and digital system. We lower target price from HK$450 to HK$408, and with 61% upside potential, we maintain Buy rating.
保持買入評級。我們喜歡公司的創新能力，多樣化的門店類型以及業界領先的供應鏈管理和數字系統。我們將目標價從450港元降至408港元，並保持買入評級，上漲潛力爲61%。
Risks: Lower-than-expected sssg; negative news and food safety incidents.
風險：同店銷售額低於預期，負面資訊和食品安全事件。
譯文內容由第三人軟體翻譯。
