Citi: Chairman's share increase in HAITIAN INT'L (01882) signals a good entry point; reiterates "Buy" with a target price of HK$27

Citi issued a research report stating that the chairman's share increase in HAITIAN INT'L (01882) signals a good entry point. The bank believes management aims to demonstrate strong confidence in the company at current low levels, and interprets the timing of the increase as management's recognition of a second-half earnings recovery and undemanding valuation. It reiterates a "Buy" rating with a target price of HK$27. Company chairman Zhang Jianming, after the interim results announcement, purchased a total of 3.431 million shares at an average price of HK$17.59, for a total consideration of US$7.7 million, as disclosed to the Hong Kong Stock Exchange. His shareholding rose from 33.32% previously to 33.53% currently. The bank expects second-half revenue this year to rise 2.3% year-on-year to RMB8.912 billion, and net profit to rise 5% year-on-year to RMB1.67 billion, better than the first half's 0.9% year-on-year revenue growth and 7.7% year-on-year net profit decline. Management guided at the results meeting for 2026 revenue growth of flat to low single digits. Affected by the high base from last year's tariff-driven pull-forward of shipments, the bank expects overseas sales to still decline by double digits year-on-year; domestic sales are expected to rise by double digits year-on-year, mainly driven by export-oriented orders rather than domestic demand, which should roughly offset the overseas decline. The MA5/Ultra PIMM was launched in early second half, which may slightly accelerate order momentum. The bank expects the company's second-half gross margin to recover to 31.8% on a half-year basis, narrowing the year-on-year decline to 80 basis points, as the RMB drag eases; under operating expense control, the EBIT margin is expected to reach 21.8%, up 40 basis points year-on-year.