HK Stock Market Move | YUM CHINA (09987) rose more than 4% in morning trading; YUM CHINA Lavazza to double its Hong Kong stores to about 10 in the coming months

YUM CHINA (09987) rose more than 4% in morning trading. As of press time, it was up 4.37% at HK$358.6, with a turnover of HK$120 million. On the news front, on October 22, YUM CHINA attended the signing ceremony for the 7th batch of key enterprises held by the Hong Kong Special Administrative Region Government's Office for Attracting Strategic Enterprises (OASES) at the Government Headquarters, officially becoming an OASES key enterprise. The group currently operates 5 Lavazza coffee shops in Hong Kong and plans to double the number of stores to about 10 in the coming months. HAITONG INT'L said that YUM CHINA's share price has already reflected recent operating pressure. We expect the company's total revenue in the third quarter to be about US$3.46 billion, with same-store sales turning to -1%, mainly due to the high base from last year's delivery subsidies, compounded by the summer timing mismatch and weather effects such as the August typhoon in East China; the company has since added promotions to hedge. We expect 4Q26 to return to slight growth as the base normalizes, with full-year same-store sales still within the 0-2% guidance range.