Investment Rating - The report maintains a "Buy" rating for Yum China, positioning it as a top choice in the restaurant industry with a target price of 29.8 [6][24]. Core Insights - Yum China's strong performance in Q2 2024 exceeded market expectations, demonstrating its robust counter-cyclical capabilities. The company has rapidly adjusted its product structure to meet consumer demand for value, leading to increased customer traffic and order volume [6][19]. - The company has implemented cost-cutting and efficiency measures to offset the negative impact of declining average transaction values on profit margins, resulting in a year-on-year increase in operating profit margin and a 4% growth in operating profit for Q2 2024 [6][19]. - The flexible pricing strategy and innovative store models, such as the Pizza Hut WOW concept, have expanded the customer base and opened up greater opportunities for store expansion in lower-tier markets [6][19]. Financial Performance Summary - For 2024, the company expects a revenue growth of 3% year-on-year, with operating profit margin stabilizing around 10% and net profit increasing in the mid-single digits [6][19]. - The financial projections indicate a revenue of 867 million, reflecting a 4.8% year-on-year growth [12][21]. - The report highlights a decrease in the proportion of food and packaging costs relative to revenue, which only increased by 0.8 percentage points year-on-year, while employee costs slightly decreased due to efficiency improvements [6][19]. Key Financial Metrics - Revenue for 2022 was 10,978 million in 2023, with a projected revenue of 444 million, with a significant increase to 867 million for 2024, indicating a growth of 4.8% [12][21]. - The report provides a forecasted PE ratio for Yum China of 14.9x for 2024, down from 16.9x in 2023, indicating a more attractive valuation [12][21].
百胜中国：2Q24业绩大超预期，再次印证公司强大的抗周期能力