Morningstar: The acquisition of Pizza Hut in mainland China may be positive for Yum China Holdings (09987.HK) with a fair value of 600 HKD.

According to the Wise Finance APP, Morningstar released a research report stating that it has raised the fair value of Yum China Holdings Inc. (09987, YUMC.US) by 1% to $77 per share in the US stock market and fair value of HK$600 in the Hong Kong stock market. Currently, the stock price in the US is about $45, still significantly undervalued, with a forecasted P/E ratio of 13 times in 2027. Management has promised to return 100% of free cash flow to shareholders.