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Investing.com -- Jefferies has identified several standout value stocks in the Chinese market, with Yum China leading the pack due to its operational efficiency and growth potential.
The brokerage’s analysis points to compelling opportunities across food, beverage, and entertainment sectors at attractive valuations.
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Yum China tops the list as one of the most efficient operators with strong management. Jefferies expects the company’s cost-saving initiatives, steady same-store sales, and expansion plans to reach 30,000 stores by 2030 to boost share performance.
The company’s committed shareholder return program further enhances its appeal as a value investment.
Its shareholder return program adds to the investment case, analysts said.
Yum China reported third-quarter 2025 financial results that surpassed analyst expectations, posting earnings per share of $0.76 on revenue of $3.21 billion.
CR Beer (CRB) is favored by Jefferies due to the brewery space’s high concentration and CRB’s market positioning. The stock currently trades at an undemanding valuation with a low-teen forward price-to-earnings ratio.
Midea (A-shares) is expected to capitalize on competitor Gree’s weakness to gain market share through better distributor control compared to peers, according to Jefferies.
Yili looks attractive for its dividend yield, valuation, and resilient capabilities across non-liquid milk sectors. Jefferies anticipates margin expansion driven by product portfolio diversification, channel optimization, and strong management execution.
Galaxy Entertainment is projected to increase to 21.6% by 2026 from 18.8% in 2024 and 20.7% in 2025, supported by hotel capacity expansion. The full opening of Capella by the end of 2025 should drive premium segment gross gaming revenue.
WH Group’s 85% of earnings come from downstream packaged meat and 15% from slaughtering. The company’s focus on containing hog production scale has contributed to earnings stability, analysts said.
WH is currently trading at a high single-digit FY26 PE with a 5-6% yield assuming 50% payout.
H&H Group is expected to benefit from business recovery, particularly in baby nutrition, while potential interest rate cuts should help lower its leverage.
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