Daily Investment Strategy
Daily focus ： Real-Time Quote
Yum China (9987): Total revenue for the first quarter of 2026 reached $3.3 billion, a 10% year-over-year increase. Operating profit rose 12% to $447 million, a record high for the quarter, with the operating margin improving to 13.7%. Diluted earnings per share increased 13% to $0.87. However, despite a 4% increase in system sales, same-store sales were flat year-over-year, reflecting growth primarily driven by scale expansion. The company returned $316 million to shareholders this quarter, steadily advancing its annual $1.5 billion return program. Looking ahead to the full year, the company aims to add over 1,900 net new stores, bringing the total number to over 20,000.
The Federal Reserve held interest rates unchanged for the third consecutive time
The Federal Reserve held interest rates unchanged for the third consecutive time, maintaining the benchmark rate at 3.50%-3.75%. However, internal disagreement erupted, with four voting members voting against the rate cut, and the market has abandoned its bets on a rate cut this year. In other news, the Senate Banking Committee approved Warsh's nomination as Fed chairman, with formal confirmation expected in May; Powell will remain a governor.
Hong Kong Stock Connect saw a net outflow of HK$3.952 billion on Wednesday. China Construction Bank (00939) saw the largest inflow at HK$494 million, followed by China National Offshore Oil Corporation (00883). Hang Seng China Enterprises Index (02828) recorded the largest net outflow at HK$2.274 billion, followed by Tencent Holdings (00700).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
