CICC: Raises YIHAI INTL target price to HKD 18, mid-term performance meets expectations
CICC released a research report stating that YIHAI INTL's revenue in the first half of the year increased by 0.02% year-on-year, with net profit rising by 0.4% year-on-year, and a dividend payout ratio of 89%, overall performance in line with expectations. During the period, the B-end catering clients performed impressively, with revenue increasing by 131.7% year-on-year, and overseas business growing by 34%, among which the bank expects overseas third-party business to increase by over 50%. The bank raised the group's earnings forecast for this year by 3% to RMB 820 million and increased the target price by 20% to HKD 18, maintaining an "outperform industry" rating. The bank anticipates that YIHAI INTL's third-party revenue will accelerate in the second half of the year, potentially achieving a double-digit growth target for the entire year. The bank pointed out that the company mainly benefits from the continued strong performance of B-end and overseas businesses, as well as the ongoing contribution of new products to overall revenue. The B-end base material team was established in the second quarter of this year, and a more significant contribution is expected in the second half of the year. At the same time, considering that raw material prices remain stable and sales, general, and administrative expenses continue to improve, it is expected that the annual net profit margin will also remain stable
According to the Zhitong Finance APP, China International Capital Corporation (CICC) released a research report stating that YIHAI INTL (01579) saw a 0.02% year-on-year increase in revenue in the first half of the year, with net profit rising 0.4% year-on-year and a payout ratio of 89%, overall performance in line with expectations. During this period, B-end catering clients performed well, with revenue increasing 131.7% year-on-year, and overseas business growing by 34%, with the bank expecting overseas third-party business to increase by over 50%. The bank raised its earnings forecast for the group by 3% to RMB 820 million and increased the target price by 20% to HKD 18, maintaining an "outperform industry" rating.
The bank expects YIHAI INTL's third-party revenue to accelerate in the second half of the year, potentially achieving a double-digit growth target for the full year. The bank pointed out that the company mainly benefits from the continued strong performance of B-end and overseas businesses, as well as the ongoing contribution of new products to overall revenue. The B-end base material team was established in the second quarter of this year, and more significant contributions are expected in the second half. Additionally, considering that raw material prices remain stable and selling, general, and administrative expenses continue to improve, the full-year net profit margin is also expected to remain stable
