According to the report released by Nomura Securities, they maintain their "market-perform" rating for Yihai International (01579), with a target price lowered from HKD 17.6 to HKD 13.2. They believe that while the valuation of the stock is not high, they remain cautious as they have not seen any factors that can effectively drive long-term sales growth. Due to lower-than-expected sales in June, reduced operating expenses and other income from previous periods, they have lowered their sales and net income forecast.

The bank predicts that Yihai International's total sales for the first half of the year will increase by 11%, lower than the initial forecast of 17%, due to weaker-than-expected growth from May to June. They believe that gross margin will slightly expand due to favorable raw material prices. However, due to reduced government subsidies and potential forex losses, they predict a 13% year-on-year decrease in net income for the first half of the year.