Northeast Securities: Maintain a "buy" rating on Yum China Holdings (09987.HK), with outstanding performance in same-store sales leading the industry. Shareholder returns guidance has been raised.

According to the Wise Finance APP, Northeast Securities released a research report stating that Best China (09987.HK) is a benchmark for the localization of Western-style fast food in China and has provided generous returns to shareholders. By entering the lower-tier market with a small-town model, it is expected to achieve a guide for store openings by 2025, with a potential of up to 20,000 stores. The performance of existing stores from the beginning of 2025 is impressive, leading the industry in recovery. The company benefits from advantages in raw material prices, digital empowerment for delivery, and streamlined operations to improve efficiency, driving improved margins for individual store models. It is expected that the company's net profit attributable to shareholders in 2025-2027 will be 9.4/9.9/10.5 billion USD, with corresponding PEs of 17.5/16.6/15.7 times, maintaining a "buy" rating.