Jefferies has adjusted its target price for Yum China (09987) shares listed in Hong Kong, reducing it from HK$497 to HK$490.2, while maintaining a "Buy" rating. The firm forecasts Yum China's net profit for the first quarter of 2026 to reach $307 million, reflecting a 0.7% year-on-year increase, primarily driven by a 3.9% rise in sales to $3.2 billion. Same-store sales are projected to grow by approximately 6%. Assuming a restaurant operating margin of 18.5%, which is down 0.1 percentage points from the previous year, operating profit is expected to increase by 5.6% to $439 million. All figures are based on constant currency rates. Jefferies has revised its net profit forecast for Yum China in 2026 to account for an $11 million mark-to-market loss on its equity investment in Meituan, and has also made minor adjustments to its earnings projections for 2026 and 2027.