Yamato: Raised China Evergrande's target price to HKD 520 and reiterated a "buy" rating.

According to Yamato's report, Yum China's fourth-quarter performance in 2025 exceeded expectations, with KFC's same-store sales growth better than expected, coupled with a price increase in delivery channels in January, indicating a recovery in consumer confidence and a trend towards rational pricing in the industry. The bank stated that Yum China's management predicts a slight increase in operating profit margin in 2026, but with improvements in the competitive situation in the Chinese market, it is expected that there is still room for its profit margin to exceed market expectations. The bank reiterated its "buy" rating on Yum China, raising its target price from 450 Hong Kong dollars to 520 Hong Kong dollars.