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ASEAN (Indo) & China-focused. Ex-Deputy HoR UBS.

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Equity Bottom-Up

<ul><li><a href="https://www.smartkarma.com/entities/23677" target="_blank" data-smartkarma-citation="entities:23677:1">Yum China Holdings, Inc. (YUMC US)</a> has seen its SSSG recover, mainly driven by its <em>KFC</em> restaurants.</li><li>Expansion plan continues at 550-600 (gross) new stores pa, coupled with remodeling for older restaurants (a commendable initiative that should not be overlooked, in our opinion).</li><li>We view management as a solid quality given its value core menu emphasis and digital &amp; delivery initiative.</li><li>Our EV/CE-based PT yields intrinsic value of $44.42/share, implying a decent 12% upside potential from current share price.</li></ul>

Yum China Holdings, Inc. (YUMC US) has seen its SSSG recover, mainly driven by its KFC restaurants.Expansion plan continues at 550-600 (gross) new stores pa, coupled with remodeling for older restaurants (a commendable initiative that should not be overlooked, in our opinion).We view management as a solid quality given its value core menu emphasis and digital &amp; delivery initiative.Our EV/CE-based PT yields intrinsic value of $44.42/share, implying a decent 12% upside potential from current share price.

Yum China Holdings

Yum China Holdings: Moving Forward