Citigroup's research report stated that Yihai International (01579.HK) is expected to achieve double-digit growth in revenue in the first half of the year, and the growth rate of third-party and related business is also at a similar level. The bank predicts that the company's gross margin will be slightly lower due to the drag of related business, while the gross margin of third-party business will slightly improve due to cost reduction.

In addition, Citigroup predicts that Yihai International's operating profit margin will decrease due to the possible delay in government subsidies and early recognition of certain distribution costs. The bank has lowered its forecast for the group's net profit from 2024 to 2026 by 10-14%. Excluding foreign exchange gains or losses, the net profit in the first half of the year is expected to fall by a single-digit percentage. The bank has lowered the group's target price from 19.3 yuan to 16.6 yuan and maintained a "buy" rating.