Yamato: Raise the target price of Yihai International (01579) to HK$20.1 to maintain a “buy” rating

The Zhitong Finance App learned that Yamato released a research report saying that Yihai International (01579)'s performance in the first half of the year completely exceeded expectations. This is the first time in many years that upstream condiments are recovering faster than the downstream restaurant industry. The bank raised the target price of Yihai International from HK$18.7 to HK$20.1, reiterated the “buy” review, and continued to be optimistic that Yihai outperformed Haidilao (06862). The latter rated it “outperforming the market”. The bank said that although the market is concerned about the risk of growth slowing in the second half of the year, due to the low base in the second half of the year and the competitive environment still favorable, Yihai International's sales are expected to rise 10% year-on-year in the second half of the year. Although slightly lower than in the first half of the year, there is still good double-digit growth.