Goldman Sachs: Yum China (09987.HK) new business progress is encouraging, raising the target price to HKD 459.

According to the Zhitong Finance APP, Goldman Sachs released a research report stating that Yum China (09987.HK) showed solid performance in the second quarter. During the earnings call, management reiterated their full-year goals for 2026 (excluding the acquisition of the Pizza Hut brand), which include same-store sales growth of 0% to 2%, system sales growth in the mid-to-high single digits, operating profit growth in the high single digits, double-digit growth in earnings per share, and slight improvements in restaurant profit margins and operating profit margins. Management expects positive growth in same-store sales and transaction volume in the third quarter. Goldman Sachs has raised its earnings forecast for 2026 to 2028 by approximately 2.5%, to reflect the second-quarter performance, update foreign exchange assumptions, and anticipate improving year-on-year profit margins in the second half of the year. The target price is raised from HKD 452 to HKD 459, maintaining a Buy rating.