Haitong International has released a research report increasing its target price for YIHAI INTL (01579) from HK$16.6 to HK$19.8. The brokerage maintained its "Outperform" rating, citing strong growth in the company's business-to-business and overseas operations, as well as a recovery in related-party business. YIHAI INTL's 2025 earnings exceeded expectations, with full-year revenue reaching RMB 6.61 billion, up 1.1% year-on-year, and net profit rising to RMB 850 million, an increase of 15.5%. In the second half of the year, revenue was RMB 3.69 billion, growing 2% year-on-year, while net profit climbed 22.9% to RMB 550 million, showing a clear quarterly improvement and largely meeting market expectations. Earnings per share for 2025 stood at RMB 0.88, aligning with the firm's earlier forecast. Haitong International projects total revenue for 2026–2028 to be RMB 70 billion, RMB 76.2 billion, and RMB 82.1 billion, respectively, with net profits of RMB 1.01 billion, RMB 1.12 billion, and RMB 1.22 billion. Corresponding earnings per share for 2026 to 2028 are estimated at RMB 0.97, RMB 1.08, and RMB 1.18, consistent with the brokerage's previous 2026 forecast and slightly above its earlier 2027 projection of RMB 1.13.
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