Nomura: Yum China's last quarter performance is stable, target price raised to 459 Hong Kong dollars.

Nomura's research report stated that Yum China's performance in the previous quarter was solid, with both revenue and profits exceeding expectations, with quarterly revenue increasing by 9% year-on-year. Benefiting from cost improvements and operational efficiency enhancements during the period, restaurant profit margins and operating profit margins significantly expanded by 70 basis points and 80 basis points, driving quarterly operating profit to reach $187 million. The report mentioned that Yum China's management reiterated early signs of consumption recovery before the Lunar New Year holiday. The bank raised its revenue forecast for Yum China for the 2026 and 2027 fiscal years by 1% to 2% and raised the target price from HK$432 to HK$459, maintaining a "buy" rating.