BOCI has released a research report announcing an upward revision of YUM CHINA's (09987, YUMC.US) target price by 2.5% from HK$442.3 to HK$453.2 and from $56.7 to $58.1, while maintaining an "Outperform" investment rating.

The bank noted its participation in YUM CHINA's Investor Day held in Shenzhen on November 17, 2025. During the event, the company unveiled its new RGM 3.0 (Resilience, Growth, Moat) strategy for the next five years, along with an expansion plan aimed at scaling system sales. YUM CHINA outlined a network strategy targeting over 25,000 stores by FY2028 and more than 30,000 stores by FY2030. This plan is built on diversified brands, segmented products and services, and differentiated store formats tailored to varying customer needs.

BOCI raised its FY2026 core earnings forecast by 3%, primarily due to higher POS growth expectations. With the FY2026 P/E multiple unchanged at 22x, the bank adjusted the target prices for both its U.S. and Hong Kong-listed shares.

Additionally, YUM CHINA plans to allocate 100% of its free cash flow to shareholders starting from FY2027, projecting an average annual return of $9–10 billion for FY2027–2028, equivalent to an approximate 6% annualized shareholder return.