Guosen: Maintaining a "outperform" rating on YUM CHINA (09987) with innovative measures driving steady same-store growth.

Guosen released a research report stating that they are maintaining a "outperform" rating for YUM CHINA (09987). Taking into account the marginal impact on investment returns, the forecasted net profit attributable to shareholders for the years 2025 to 2027 has been adjusted to 927 million/993 million/1.066 billion US dollars (adjustment range -2.0%/0%/0%), considering share buybacks, with EPS of 2.62/2.95/3.30 US dollars. Continuous improvement in operating efficiency during the period is driving steady growth in operating profit, along with relatively stable expansion plans. Looking ahead, under the drive for innovation in delivery and business model products, same-store sales are expected to continue to show a positive trend, with steady progress in shareholder returns contributing additional highlights. Guosen's key points are as follows: Operating profit increased by 7.8% in 2025Q3 In 2025Q3, the company achieved revenue of 3.206 billion US dollars, a year-on-year increase of +4.4%; achieved operating profit of 400 million US dollars, a year-on-year increase of +7.8%, with the improvement in profitability mainly driven by the enhancement of restaurant operating efficiency. Net profit attributable to shareholders was 282 million US dollars, a year-on-year decrease of -5.1%, mainly due to a disturbance in net profit attributable to shareholders of approximately 10 million US dollars from pre-tax investment losses (mainly due to fluctuations in Meituan's stock price, with a profit of 34 million US dollars in the same period of 24Q3), with an EPS of 0.77 US dollars. By brand, in 2025Q3, KFC achieved revenue of 2.404 billion US dollars, a year-on-year increase of +4.0%; operating profit of 384 million US dollars, a year-on-year increase of +5.5%; operating profit margin of 16.0%, a year-on-year increa...