Investment Rating - The investment rating for Yum China (09987) is "Buy" [5] Core Views - The company achieved a net profit of 2.679 billion, a year-on-year increase of 1% [1] - The growth in revenue is primarily driven by a rapid increase in new store openings, with a total store count growing by 13% year-on-year [1] - Cost reduction and efficiency improvements have significantly contributed to profit growth, with the profit margin for Pizza Hut restaurants increasing by nearly 1 percentage point [2] - The company maintains its commitment to a 1 billion in the first half of 2024 [1] Summary by Sections Financial Performance - In Q2 2024, the company reported operating income of 212 million, up 8% year-on-year [1] - Revenue growth is attributed to new store openings and effective cost management, with overall management expense ratio improving by approximately 1 percentage point [2] Store Expansion - The company continues its expansion trend, with KFC and Pizza Hut store counts increasing by 14% year-on-year [3] - The company aims to open 1,500 to 1,700 new stores within the year, with a focus on innovative store formats like KFC Coffee and Pizza Hut's "Wow" stores [3] Profit Forecast and Valuation - Yum China is projected to achieve revenues of 12.316 billion, and 852 million, 1.019 billion, with corresponding year-on-year growth rates of 3%, 10%, and 8% [4] - The company is expected to maintain a price-to-earnings ratio (P/E) of 15x, 14x, and 13x for the years 2024, 2025, and 2026 respectively [4]
百胜中国：24Q2业绩点评：扩店趋势持续，降本提效超预期