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<Research> BofAS: YUM CHINA (09987.HK) Share Price Weakness Driven by Fund Flows Not Fundamentals; Reiterate Buy
Recommend 3 Positive 2 Negative 2 |
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BofAS issued a report stating that YUM CHINA (09987.HK) has seen its share price decline by 12% since May, compared with a 3% drop in the MSCI China over the same period. The broker believes the recent weakness was mainly driven by fund flows rather than fundamentals, primarily due to significant divergence between AI-related names and other sectors. The report noted that as a representative US-listed Chinese stock and a name heavily held by long-term investors, YUM CHINA is more susceptible to amplified impacts from capital flows. The broker believes its second-quarter same-store sales growth has improved from the first quarter, and that it is making steady progress toward achieving its 2026 guidance for the full year. The current share price has fallen to a one-year low and is near the lower end of the range since September 2024. Total shareholder return for 2026 is expected to reach as high as 10%. Therefore, the broker believes that after the recent sell-off, YUM CHINA offers a highly attractive buying opportunity and reiterates its Buy rating. The US stock TP for Yum China Holdings, Inc. (YUMC.US) is USD56.5, while the Hong Kong stock TP is HKD438. (ha/da) 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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