Fosun: The acquisition of the ownership of Pizza Hut brand in mainland China by Yum China (09987) has positive strategic significance

According to the Wisdom Financial APP, Furi Research has released a report stating that Yum China (09987) has announced the acquisition of the trademark for the mainland China Pizza Hut brand for $1.2 billion. The bank believes that this transaction has positive strategic significance and a reasonable valuation, and expects that the company will be able to cautiously introduce leverage over time to optimize the balance sheet and increase shareholder return on equity. After the transaction is completed, the mainland Pizza Hut will no longer need to pay Yum! Brands franchise fees. The bank restated its "buy" rating on Yum China, with a Hong Kong target price of 505.5 Hong Kong dollars.