Zhong Tong Financial News app learned that Yihai International (01579) is now up more than 4%, up 4.16% as of press time, at HKD 15.04, with a turnover of HKD 20.6459 million.

GF SEC pointed out that since 2022, Yihai Intl and Sichuan Teway Food Group have gradually widened their gap due to the pressure from related parties, weak demand for fast food, and the failure of Chinese-style complex tones to keep pace with the times. Considering the differences in channel genes and product matrices, Yihai is more severely affected by external environmental disturbances, but organizational adjustments are lagging behind and market reactions may be slowed down. We believe that this year may bring a turning point in related party growth, product quality and price ratio, incentive model reform, and multi-channel supplementation.

The bank pointed out that industry competition has become more rational, and the leading positions of the company and Haidilao are stable. In addition, in 2023, both the company and Haidilao will significantly increase their dividend payout ratio to 90%, considering the current ample production capacity, low capital expenditures, and abundant cash flow, high dividend payouts are likely to be supported.