HK Stock Market Move | Yum China (09987) rises over 3% against the market trend, with a year-on-year increase of 10.16% in net profit attributable to shareholders, and a dividend of 0.24 US dollars.

YUM CHINA (09987) rose more than 3% against the market, with a gain of 3.34% to HKD 396.6 at the time of publication, with a turnover of HKD 133 million. On the news front, on February 28, YUM CHINA announced that for the fiscal year ending December 31, 2024, the attributable net profit to shareholders was USD 911 million, a year-on-year growth of 10.16%; basic earnings per share were USD 2.34. Cash dividends were USD 0.24 per share. During the period, the company achieved revenue of USD 11.303 billion, a year-on-year increase of 2.96%, mainly due to a 7% contribution from net new stores, partially offset by a decrease in same-store sales due to a decrease in average check and an increase in same-store transaction volume. Operating profit increased by 5% or 8% (excluding the impact of foreign currency conversion of USD 280 million). During the period, restaurant revenue was USD 10.651 billion, a year-on-year increase of 2.50%. System sales increased by 5% year-on-year, excluding the impact of foreign currency conversion. This growth was mainly attributed to the 7% contribution from net new stores. Same-store sales reached 97% of the same period last year. The total number of stores increased by 12%, with a net addition of 1,751 stores, including 512 franchise stores, accounting for approximately 29% of the total net new stores. Looking ahead, for the fiscal year 2025, the company expects to add approximately 1,600 to 1,800 new stores, with capital expenditure ranging between USD 700 million and USD 800 million. The company plans to return USD 3 billion to shareholders between 2025 and 2026, on top of the USD 1.5 billion already returned in 2024. In addition, the company expects that in the coming years, the proportion of franchise stores in the net new stores for KFC and Pizza Hut will gradually increase to 40-50% and 20-30%, respectively.