Macquarie: YUM CHINA (09987) "outperformed the market" rating target price raised to HK$428.

Macquarie released a research report stating that YUM CHINA (09987) has an "outperform" rating, with an expectation of slowing growth in same-store sales. Due to a higher number of franchised stores, the group's net profit forecast for 2025 and 2026 was revised downward by 1.9% and 0.2% respectively, while the target price was raised by 2% from 420 Hong Kong dollars to 428 Hong Kong dollars. The report mentioned that same-store sales growth during the Chinese New Year period was slightly positive for YUM CHINA. With competitors slowing down expansion or raising prices, management pointed out that competition is becoming more rational, leading to an increase in profit margins. For 2025, the report cited YUM CHINA management's goal of opening 1,600 to 1,800 new stores, with the net openings of KFC and Pizza Hut franchise combinations expected to gradually increase to 40-50% and 20-30% in the coming years. The group's dividend for the first quarter of this year increased by 50%.