Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2]. Core Insights - The company demonstrated stable operations with improved efficiency and resilience, achieving a revenue of 911 million, up 10% year-on-year [5][11]. - The growth was primarily driven by store expansion, with a total of 16,395 stores by the end of 2024, and a net increase of 1,751 stores during the year [6][10]. - KFC outperformed Pizza Hut, with KFC revenue at 2.260 billion, a 1% increase [7][11]. - The company plans to accelerate store openings, targeting 1,600 to 1,800 new stores in 2025, with a capital expenditure of 800 million [10][11]. Financial Performance - In Q4 2024, the company reported revenue of 115 million, up 19% year-on-year [5][11]. - The restaurant profit margin for 2024 was 15.7%, with Q4 margin at 12.3%, reflecting operational efficiency improvements [9][11]. - The company expects revenue growth rates of 4.6%, 6.3%, and 5.7% for 2025, 2026, and 2027, respectively, with net profit growth rates of 2.2%, 10.9%, and 12.4% [11][13]. Store Expansion and Innovation - The company aims to increase the proportion of franchise stores, targeting 40-50% for KFC and 20-30% for Pizza Hut in the coming years [10][11]. - Continuous innovation in menu offerings and business models is planned to expand market share [10][11]. Shareholder Returns - The company returned 3 billion from 2025 to 2026 [10][11].
百胜中国：经营稳健，效率提升，韧性十足-20250312