Kaiji securities released a research report saying that it is optimistic about the long-term revenue and profit growth of Yum China (09987), and repair the valuation after the epidemic. According to the P / E ratio of 2022, yum’s current valuation is 22.6 times, which is 33.3 times lower than the average level since the IPO in Hong Kong. It is recommended to absorb, and the target price is 430 yuan.
Kaiji Securities believes that although the short-term same store sales growth of Yum China-s (09987) is affected by the epidemic, the company opened more than 1700 new stores last year and will also benefit from the recovery of demand after the epidemic. Meanwhile, yum China focuses on the development of coffee shop business. The same store sales of its brand coffii & joy are growing rapidly, and plans to expand the opening range of high-end coffee brand Lavazza. It plans to open 1000 stores by 2025 (22 by August 2021).
