Yihai International (1579.HK): Upgrade to Buy on solid fundamentals and attractive valuation

研报英文原文证据摘录

Yihai International (1579.HK): Upgrade to Buy on solid fundamentals and attractive valuation

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18 Jun 2026 04:05:35 ET │ 15 pages

Yihai International (1579.HK)

Upgrade to Buy on solid fundamentals and attractive valuation

CITI'S TAKE

At the Citi Consumer Corp Day on Jun 17, Yihai mgmt was confident of

achieving double-digit earnings growth in 1H26E, driven by double-digit

revenue growth for the third-party business, GPM expansion, slight Buy ↑ from Neutral

S&D/sales improvement off a high base and stable G&A/sales despite lower Price (17 Jun 26 16:10) HK$12.93

govt grant and unfavorable FX swing. We raise 2026E-28E NP by 3-12% to

Target price HK$16.60reflect stronger-than-expected top line and GPM trends. Capex will likely be

limited ahead, and Yihai intends to keep a high dividend payout. Upgrade to Expected share price return 28.4%

Buy from Neutral on solid fundamentals and attractive valuation (8.2% yield). Expected dividend yield 7.1%

Expected total return 35.5%

Third-party sales – Third-party sales grew by double digits in 2026-YTD driven by

strong performance in to-B, overseas and KA channels. Chinese compound Market Cap HK$13,405M

condiment grew the fastest due to small scale and strength in to-B, overseas and KA US$1,711M

channels, followed by hot pot condiment for which 1H is a low season. Convenience

food sales turned around, as small hotpot priced ~Rmb30 stabilized after hitting the

bottom last year with Rmb300m sales while other products recorded sales growth.

Price PerformanceKA Channel – KA channel accounted for 30% of third-party sales in 2025, and mgmt

expect higher contribution in 2026 with double-digit sales growth. It launched (RIC: 1579.HK, BB: 1579 HK)

tailored products in 2025 with sales of ~Rmb200m; these have become more