Nomura: Maintains a 'buy' rating on Yum China, with the target price raised to HK$415.
Nomura released a research report, maintaining a 'buy' rating for Yum China (09987), believing that balanced growth deserves more recognition, thus raising the target price by 13% from 365.82 Hong Kong dollars to 415 Hong Kong dollars. The bank stated that Yum China's overall performance in the third quarter of this year exceeded institutional expectations. Specifically, the group's operating profit and core operating profit were about 7% higher than market expectations, mainly due to the elasticity of its restaurant profit margin and cost savings. Furthermore, Yum China further strengthened its shareholder return plan by announcing an additional $1.5 billion in shareholder returns for 2024-2026, according to Nomura.
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