Yihai International 1579

[winston]

not vested

Yihai International 頤海國際 (1579 HK)

Sharing the same ultimate controlling shareholder with Haidilao Group (HDL), Yihai is HDL’s only hotpot soup flavouring supplier.

Yihai posted a better than market expected results in 2017, especially for related party revenue and the small hotpot surprise.

Expanding both offline and online channels, the small hotpot should expand further and we project around 10% of total revenue will be driven by the product in 2020.

With HDL's support and opportunities in third-party catering, we believe the growth story should go on.

We maintain a BUY rating and raise the target price to HK$12.50.

http://www.yihchina.com/en/index.html

Source: UOBKH