UBS released a research report stating that maintaining the “neutral” rating of Yihai International (01579), it is expected that the market will respond positively to the Group's increase in dividends by 5% and 6%, respectively. The compound annual growth rates of sales and net profit for 2024 and 25 are expected to be 8% and 9%, respectively, and the target price will be raised from HK$13 to HK$14.
According to the report, Yihai International's sales last year remained flat, while net profit increased 15% to 853 million yuan, which meant that sales and net profit for the second half of last year increased 2% and 3% year on year, respectively, beating this forecast. The most surprising thing was that the Group paid a final interest rate of 74 cents per share, which meant that the dividend payout ratio reached 90%, compared to only 20% to 30% in the past few years.