Jinwu Financial News | According to Huachuang Securities Research Report, Yihai International (01579) announced 23-year results. During the period, the company achieved main revenue of 6.148 billion yuan, the same level as the previous year; achieved net profit of 853 million yuan, an increase of 14.9% over the previous year, and the net profit margin to mother was 13.85% (+1.81 pct).
The bank believes that the company has an excellent track, uses the existing strong brand+flexible system, and strong incentives to sell “addictive” items, and that the sales side uses a partner/mentoring system to provide strong incentives. Demand from related parties is stable, and third parties are strengthening product organization and expanding B-side channels, but considering the slowdown in demand for self-heating products, etc., the bank lowered the 2024-2025 EPS forecast to 0.93 yuan and 1.05 yuan (previous values were 1.02 yuan, 1.28 yuan), and added the 2026 forecast to 1.17 yuan. The current stock price corresponding to PE is 15 times, 13 times, and 12 times, respectively. PE is given 20 times in 24 years, and the corresponding target price is HK$19.98 (current exchange rate), maintaining the “recommended” rating.