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<Research>CLSA Neutral on Potential Bid by YUM CHINA for Jardine Catering Biz
Recommend 6 Positive 2 Negative 4 |
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YUM CHINA (09987.HK) is reportedly one of the potential buyers interested in acquiring the catering business of Jardine Matheson, which includes about 1,000 KFC and Pizza Hut outlets across the Asia-Pacific region, CLSA said in its report. If the acquisition is completed, it would mark YUM CHINA's first expansion outside mainland China and, assuming store density similar to the domestic market, could add around 2,500 new outlets. However, given the markedly different competitive landscape in these new markets, the broker remains skeptical about whether the company can fully close the profitability gap with its China operations. Although the reported price tag of USD400 million is significant, it is expected to have no impact on YUM CHINA's shareholder return plan. The broker upheld a Neutral stance on the potential transaction. It rated Yum China Holdings, Inc. (YUMC.US) at Outperform with a TP of USD56. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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