Huatai International: Raised the target price of Yihai International to 20 Hong Kong dollars, expecting steady improvement in profit quality.

Haitong International released a report stating that, based on recent communication with listed companies, Yihai International's operational strategy for 2026 is clear, shifting its focus from expanding scale to optimizing structure. B-side operations will move from exploration to deep cultivation, overseas operations will maintain high growth, convenience and fast food enterprises will stabilize and rebound, cost and capital expenditure will be controllable, profit quality will steadily improve, and performance growth will have strong resilience. The bank maintains its previous forecast, expecting the company's total revenue for 2026 to 2028 to be 7 billion, 7.62 billion, and 8.21 billion respectively, with net profits of 1.01 billion, 1.12 billion, and 1.22 billion respectively, corresponding to earnings per share of 0.97, 1.08, and 1.18 yuan. The bank maintains a valuation of the company at 18 times earnings for 2026, with the target price revised up from 19.8 HKD to 20 HKD due to exchange rate fluctuations. Considering the high growth of the company's B-side and overseas businesses, as well as the bottoming out of affiliate businesses, the bank maintains a "outperform the market" rating.