Nomura: We rate YUM CHINA (09987) as "Buy" with a target price raised to HK$438.

Nomura released a research report stating that YUM CHINA (09987) has a "buy" rating with a target price raised from HK$415 to HK$438. The company's performance in the last quarter met expectations, reflecting a stable recovery last quarter, and positive guidance for this year. The report states that YUM CHINA's revenue in the last quarter was US$2.595 billion, a 4% year-on-year increase, and core operating profit was US$150 million, a 35% year-on-year increase, both meeting market expectations. The gross margin of restaurants in the last quarter increased by 180 basis points to 12.3%. The company declared a quarterly dividend of $0.24 per share. At the same time, the company shared clear guidance for 2025, with a mid-single-digit increase in system sales, stable or improved core operating profit margins. The bank believes this demonstrates strong confidence from management in the resilience of the business.