UBS: Raises YIHAI INTL(01579) target price to 18.2 Hong Kong dollars, reiterates "buy" rating.

UBS released a research report stating that it has raised the revenue forecasts for YIHAI INTL (01579) by 1% for last year and this year, and the net profit forecast has increased by 3% and 6% respectively. The new forecasts imply a compound annual growth rate of 5% and 11% for revenue and net profit for the years 2025 to 2026. Using a discounted cash flow rate, UBS has raised its target price for the company from 15.9 Hong Kong dollars to 18.2 Hong Kong dollars, reaffirming a "buy" rating. The bank's outlook for YIHAI's growth prospects has become more optimistic, supported by the following factors: 1) a more positive outlook for restaurant demand in 2026, benefiting restaurant supply chain companies including YIHAI; 2) a turning point in related party sales, with HAIDILAO recovering from operating at a low base; and 3) YIHAI's profit margin is expected to improve after a price increase in the fourth quarter of 2025.