Macquarie expects that YIHAI INTL's gross margin improved by 20 basis points to 32.6% in the second half of last year.
According to Zhitong Finance APP, Macquarie published a research report stating that it gives YIHAI INTL (01579) an "outperform the market" rating, benefiting from favorable input costs and product portfolio improvements, offsetting the headwinds of declining sales prices. It is expected that the group's gross margin will improve by 20 basis points to 32.6% in the second half of last year, and the Target Price will be raised from HKD 14.8 to HKD 16.2.
The institution indicated that due to the sluggish recovery of related party Business and falling prices, it has lowered its profit forecast for YIHAI INTL for 2024 to 2026 by 5.7%, 6.1%, and 3.9%, respectively. However, YIHAI INTL is expected to benefit from the expansion of its overseas business this year. The company's manufacturing facility in Thailand was completed in 2024, but it is still in the process of obtaining export permits. Therefore, shipments may begin this year. The company is establishing a local R&D team to localize product flavors while targeting both B2B and B2C businesses.