德意志银行-Yum China (YUMC.US) 3Q18 preview - high base expected; higher dividend might be a surprise-20181015

Maintaining Buy We believe the market is aware of slower performance in 3Q/4Q18. In the current market, we believe any gesture in terms of increasing the dividend payout will be a help. We expect the company to raise DPS by 10% from 3Q18. We expect 2018 /19 payout to reach 35% (from 30%) and 50% (maintain). This compares to market estimates of 28% / 29% respectively for the same period.