HK Stock Market Move | YIHAI INTL(01579) rebounds more than 3% benefited from the expansion of overseas business, will focus on 2B and 2C businesses in the future.

YIHAI INTL (01579) rebounds by over 3%, as of the time of writing, up by 3.3% to HK$13.16, with a turnover of HK$28.89 million. Macquarie has released a research report giving YIHAI INTL an "outperform" rating, benefiting from favorable input cost and product portfolio improvements, offsetting the headwinds of declining selling prices. The group's gross profit margin is expected to improve by 20 basis points to 32.6% in the second half of last year, with the target price raised from HK$14.8 to HK$16.2. The bank stated that due to weak recovery of related party businesses and price reductions, they have lowered YIHAI's net profit forecast for 2024 to 2026 by 5.7%, 6.1% and 3.9% respectively. However, YIHAI INTL is expected to benefit from overseas business expansion this year, with manufacturing facilities in Thailand expected to start shipping this year after obtaining export permits. The company is establishing a local R&D team to localize product tastes and target both B2B and B2C businesses.