[ET Net News Agency, 5 September 2019] Goldman Sachs lifted its target price for Yihai
International Holding (01579) to HK$46.3 from HK$43.5 and maintained its "neutral" rating.
The research house said Yihai's 1H earnings were in line with a beat on third party
sales offset by higher OPEX.
Looking ahead, Goldman still sees meaningful growth opportunities for Yihai, based on
(1) persistent momentum from third-party business driven by the refined sales incentive
program, logistic enhancements, persistent distribution penetration, and product
innovation; and (2) resilient related party growth along with Haidilao's (06862)
aggressive expansion.
Goldman revised up its 2019-21 net income forecasts by 1-8% to factor in stronger
third-party growth, higher OPEX and the ever-increasing productivity. (KL)