Jinwu Financial News | According to China Merchants Securities Research Report, Yum China (09987) released the 2024 Q1 financial report. The Q1 company achieved revenue of US$2.96 billion/+1%, operating profit of US$370 million/ -10%, and adjusted net profit of US$290 million/ -2%. The results were in line with market expectations.
According to the bank, the number of 24Q1 stores continued to grow, and same-store sales remained stable on the basis of a high base in the same period of 23 years. Considering its strong store expansion capabilities and competitive advantage, the bank is optimistic about its subsequent valuation repair and future development. The company expects to achieve net profit of 8.7/9.6/1.07 billion US dollars in 24-26, corresponding PE of 17x/15x/14x, respectively, maintaining a “highly recommended” rating.