UOB Kay Hian has issued a research report initiating coverage on Yum China (09987) with a "Buy" rating and a target price of HK$494.8. The brokerage stated that the company's RGM 3.0 strategy, which focuses on "resilience, growth, and competitive moat," is expected to drive the development of new business models and products for a broad consumer base across various dining occasions. Simultaneously, the strategy aims to integrate back-end resources to create synergies among stores, regions, and brands, positioning the company to stand out in the fast-food industry. Additionally, Yum China targets a same-store sales index of 100 to 102 for 2026–2028, implying annual same-store sales growth of 0% to 2%, with system-wide sales expected to grow at a mid- to high-single-digit rate annually. Supported by integrated infrastructure, a flexible cost structure, and streamlined store management, the company anticipates its operating profit margin and restaurant-level margin will reach at least 11.5% and 16.7%, respectively, by 2028.