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百胜中国：2024年二季报点评：超预期的利润表现，经营效率持续提升
09987YUM CHINA(09987) 民生证券·2024-08-07 11:01

Investment Rating - The report maintains a "Buy" rating for Yum China (9987.HK) [4] Core Insights - The company reported a strong profit performance in Q2 2024, with revenue of 2.679billion,ayear−over−yearincreaseof12.679 billion, a year-over-year increase of 1% (4% excluding currency effects) [2] - Operating profit reached 266 million, up 4% year-over-year, with an operating margin of 9.9%, reflecting a 0.2 percentage point increase [2] - The company is focusing on improving operational efficiency and optimizing store formats, which has led to better-than-expected profit performance despite slight revenue pressure [2][3] Summary by Sections Financial Performance - Q2 revenue was 2.679billion,withayear−over−yeargrowthof12.679 billion, with a year-over-year growth of 1% (4% excluding currency effects) [2] - Operating profit was 266 million, a 4% increase year-over-year, with an operating margin of 9.9% [2] - Net profit for Q2 was 212million,an8212 million, an 8% increase year-over-year, with a net margin of 7.9% [2] Operational Efficiency - The company has improved its cost control, with a restaurant operating profit margin of 15.5% in Q2 [2] - KFC's operating profit margin was 16.2%, while Pizza Hut's was 13.2%, showing varied performance across brands [2] - The company is implementing projects like "Fresh Eye" and "Red Eye" to optimize operational processes and reduce labor costs [2] Same-Store Sales and Growth Initiatives - Same-store sales decreased by 4%, with KFC down 3% and Pizza Hut down 8% [3] - The company is launching new store formats like K COFFEE and WOW to drive same-store growth [3] - A total of 401 new restaurants were opened in Q2, with a plan to add 1,500-1,700 new stores throughout the year [3] Shareholder Returns - The company returned 249 million to shareholders in Q2 through buybacks and cash dividends, with a total of 994millionreturnedyear−to−date[3]−Theannualshareholderreturntargetis994 million returned year-to-date [3] - The annual shareholder return target is 1.5 billion, with 66% of this target already achieved [3] Future Projections - Projected net profits for 2024-2026 are 878million,878 million, 968 million, and 1.053billion,respectively[4]−ExpectedEPSforthesameperiodis1.053 billion, respectively [4] - Expected EPS for the same period is 2.28, 2.51,and2.51, and 2.73, with corresponding P/E ratios of 14, 13, and 12 [4]