GF Securities: Maintains "Buy" Rating on Yum China (09987.HK); H-share Fair Value at HK$504.87

Zhito Finance APP has learned that GF Securities issued a research report stating it maintains a "Buy" rating on Yum China (09987.HK), assigning the company an 18x price-to-earnings (PE) ratio for 2027, corresponding to a fair value of HK$504.87 per share for the Hong Kong stock and, after accounting for exchange rate factors, a fair value of US$64.37 per ADS for the US stock. The bank expects the company's net profit attributable to shareholders for 2026 to 2028 to be US$1.03 billion, US$1.16 billion, and US$1.27 billion, respectively. In the third quarter of 2026, the company's revenue was US$3.5 billion, up 8% year on year; core operating profit was US$420 million, up 6% year on year; and net profit attributable to shareholders was US$310 million, up 10% year on year. The bank believes that the company's per-store UE continues to improve, store expansion expectations are relatively strong, and it maintains a relatively high shareholder return guidance.