JPMorgan Chase: Yum China's (YUMC.US) performance meets expectations, rating is Hold.

According to the Zhidao Finance APP, Morgan Stanley released a research report stating that after Yum China (YUMC.US, 09987.HK) announced its first quarter 2025 results on April 30, its US stock price dropped by 7.8% (the S&P 500 index remained flat, Starbucks fell by 6%, and Luckin Coffee fell by 6%). The results were roughly in line with market expectations (system sales / adjusted earnings per share increased by 2%/8.5%). Contrary to the stock price trend, Morgan Stanley holds a more positive view on the performance report, believing that Yum China has struck a balance between growth and quality, and the market is overly concerned about its first quarter 2025 growth. Analysts have adjusted their expectations moderately and expect the growth rates of system sales / revenue / earnings per share for 2025 to be 4.5%/1.8%/5.1% respectively. The target price for June 2026 is $60, with an expected P/E ratio of 20.