CMSI said in a research report that although YUM CHINA (09987.HK) -2.000 (-0.569%) Short selling $52.09M; Ratio 27.065% faced a high base effect and rider cost pressure in 1Q26, the group still delivered solid quarterly results and reiterated its full-year 2026 guidance, including same-store sales growth of 0% to 2%, system sales growth in the mid- to high-single digits, operating profit growth in the high-single digits at constant exchange rates, and double-digit EPS growth. Management expects full-year restaurant margin and operating margin to edge up, driven by broadly stable raw material costs and strict control of operating and other expenses (including optimized capital expenditure and rental improvements).The broker noted that the share price retreated by about 10% after the annual results announcement and believes an attractive entry point has emerged. If margin improvement and sequential revenue acceleration in 2H26 materialize, earnings growth is expected to further accelerate.Related News CLSA Neutral on Potential Bid by YUM CHINA (09987.HK) for Jardine Restaurant BusinessThe broker remains positive on the companys steady growth trajectory and reiterates its Overweight rating, with a TP of HKD499 for the Hong Kong shares and a TP of USD64 for Yum China Holdings, Inc. (YUMC.US) . The TP is based on a 22x PE at end-2026. (hc/w)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-22 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
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