HAITONG INT'L: YIHAI INTL's (01579) target price raised to 19.8 Hong Kong dollars, last year's profit exceeded expectations.

HAITONG INT'L released a research report stating that the target price of YIHAI INTL (01579) has been raised from HK$16.6 to HK$19.8. Considering the high growth of the company's B-end and overseas businesses, as well as the recovery of related party businesses at the bottom, the rating of "outperform the market" is maintained. YIHAI INTL's profit in 2025 exceeded expectations, with full-year operating income of 6.61 billion RMB, a year-on-year increase of 1.1%; net profit was 850 million RMB, a year-on-year increase of 15.5%. In the second half of last year, income was 3.69 billion RMB, a year-on-year increase of 2%; net profit was 550 million RMB, a year-on-year increase of 22.9%. The performance has significantly improved by quarter, which is basically in line with market expectations. Earnings per share in 2025 are 0.88 RMB, which is basically consistent with the bank's previous forecast. HAITONG INT'L predicts that the total revenue for 2026-2028 will be 7 billion, 7.62 billion, and 8.21 billion RMB respectively, with net profits of 1.01 billion, 1.12 billion, and 1.22 billion RMB respectively. Earnings per share for each year from 2026 to 2028 will be 0.97 RMB, 1.08 RMB, and 1.18 RMB, consistent with the bank's previous forecast for 2026, and the forecast for 2027 is 1.13 RMB.