In "Major Banks," CITIC Securities raised the target price for YIHAI INTL to 18 yuan, with mid-term performance meeting expectations

CICC published a research report indicating that YIHAI INTL (01579.HK) achieved a year-on-year revenue growth of 0.02% in the first half of the year, with net profit increasing by 0.4% year-on-year, and a payout ratio of 89%, overall performance in line with expectations. During the period, the B-end catering clients performed remarkably, with revenue increasing by 131.7% year-on-year, and overseas business growing by 34%, among which the bank expects overseas third-party business to grow by over 50%.

The bank anticipates that YIHAI INTL's third-party revenue will accelerate in the second half of the year, potentially achieving a double-digit growth target for the entire year. The bank pointed out that the company mainly benefits from the continued strong performance of B-end and overseas businesses, as well as the ongoing contribution of new products to overall revenue. The B-end base material team was established in the second quarter of this year, and a more significant contribution is expected in the second half of the year. At the same time, considering that raw material prices remain stable and sales, general, and administrative expenses continue to improve, the annual net profit margin is also expected to remain stable.

The bank raised the group's earnings forecast for this year by 3% to RMB 820 million and increased the target price by 20% to RMB 18, maintaining an "outperform the industry" rating