Yihai International Holding Ltd. (1579) AI Stock Analysis

• Market Cap: HK$13.43B
• Dividend Yield: 5.89%
• Average Volume (3M): 3.59M
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.27
• Revenue Growth: 1.10%
• EPS Growth: -7.88%
• Country: HK
• Employees: 3,163
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.36
• Shares Outstanding: 1,036,700,000
• 10 Day Avg. Volume: 3,039,697
• 30 Day Avg. Volume: 3,592,697
• PEG Ratio: -1.36
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 2.10
• P/FCF Ratio: 20.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$14.40
• Price Target Upside: 11.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$15.00 ▲(16.01% Upside)

Yihai International Holding Ltd. has a solid financial foundation with consistent revenue growth and strong operational margins. However, cash flow challenges and bearish technical indicators weigh on the stock. The attractive valuation with a reasonable P/E ratio and high dividend yield provides some support.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a high equity ratio provide durable financial resilience. This balance sheet strength reduces refinancing risk, preserves strategic optionality for capex or M&A, and supports consistent operations through industry cycles over the next several months.

Operational Margin Sustainability

Consistently healthy gross and operating margins indicate structural cost discipline and pricing power in packaged foods. Such margin profiles support long-term earnings stability, cushioning input-cost volatility and enabling reinvestment in distribution and brand building over a multi-month horizon.

Diversified Distribution & Brand Reach

A multi-channel model and strong retail/e‑commerce partnerships reduce concentration risk and amplify reach. Coupled with a recognized brand in hot pot condiments, this structural distribution mix supports sustained revenue growth as domestic consumption and platform penetration expand over the medium term.

Negative Factors

Operating Cash Flow Shortfall

A collapse to zero operating cash flow is a material structural concern: profits are not converting to cash. This constrains liquidity for capex, dividends or debt servicing without outside financing, raising execution and funding risk over the coming quarters.

Margin and ROE Compression

Declining net margin and a modest ROE drop signal profit retention pressure despite solid gross margins. Sustained margin compression reduces internal cash generation and shareholder returns, requiring either cost or pricing action to restore long‑term profitability.

Falling EPS

Negative EPS growth reflects shrinking per‑share profitability, which can persist if underlying earnings or cash conversion issues remain. Over a 2–6 month horizon this constrains reinvestment and may force management to prioritize short‑term fixes over strategic initiatives.

Yihai International Holding Ltd. Business Overview & Revenue Model

Company Description

Yihai International Holding Ltd., together with its subsidiaries, researches, develops, manufactures, distributes, and sells hot pot soup flavoring, hot pot dipping sauce, and Chinese style compound condiment products under Haidilao brand. It offers spicy vegetable oil, fragrant tallow, mellow tallow, sour tomato, green pepper and beef tallow, red curry and beef tallow, and three delicacy broth hot pot condiments; mushroom soup hotpot broths; and fresh soups. The company also provides braised, minced garlic, spicy, thirteen kind of spices, and fresh spicy crayfish seasoners; fish sour soup with pickled pepper; picked fish seasoner; spicy boiled fish, tomato malatang, sour soup malatang, and chilly pot seasoners; and fresh and original marinade sauces. In addition, it offers various HDL hot pot sauces and spicy barbecue sauces; and sweet pepper, oat and green pepper, onion and soybean, fine beef, and green pepper and bolete table sauces. Further, the company offers snack food and other packaged goods; raw materials; self-serving small hot pots and rice, brewed silk noodles, and instant rice; and consulting services. It provides its products through distributors to hypermarkets, supermarkets, grocery stores, neighborhood stores, and butcher shops, as well as e-commerce channels covering approximately 31 provincial regions of China, as well as the Hong Kong, Macau, and Taiwan regions; and 49 international countries and markets. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Yihai International generates revenue primarily through the sale of its food products, particularly its range of hot pot seasonings and sauces. The company operates a business model that includes both retail and wholesale distribution channels, targeting both domestic and international markets. Key revenue streams include direct sales to supermarkets, online platforms, and food service providers. Significant partnerships with major retailers and e-commerce platforms enhance its market reach and contribute to its earnings. Additionally, the growing popularity of hot pot cuisine and the expanding middle-class consumer base in China further bolster demand for Yihai's products.

Yihai International Holding Ltd. Financial Statement Overview

Summary

Yihai International Holding Ltd. shows consistent revenue growth and strong operational margins. The balance sheet is stable with low leverage and high equity ratios. However, cash flow challenges, including zero operating cash flow in 2024, pose a risk to liquidity management.

Income Statement

Yihai International Holding Ltd. shows a stable growth trajectory with a revenue growth rate of 6.37% from 2023 to 2024, and a consistent gross profit margin around 31% to 33% over the years. However, the net profit margin decreased from 13.87% in 2023 to 11.31% in 2024, indicating some pressure on profitability. The EBIT and EBITDA margins are robust, maintaining above 16% and 19%, respectively, highlighting operational efficiency.

Balance Sheet

The company demonstrates a strong balance sheet with a decreasing debt-to-equity ratio, currently at 0.02, reflecting low leverage. The equity ratio improved to 78.83% in 2024, showcasing financial stability. However, the return on equity declined slightly from 17.70% in 2023 to 16.19% in 2024, suggesting a minor dip in shareholder returns.

Cash Flow

The cash flow analysis indicates a challenge with zero operating cash flow in 2024, down from 958.99 million in 2023. Free cash flow showed growth in previous years but is currently non-existent, posing a risk to liquidity management. The operating cash flow to net income ratio is unavailable for 2024 due to missing data, impacting cash flow transparency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.54B	6.54B	6.15B	6.15B	5.94B	5.36B
Gross Profit	2.03B	2.05B	1.94B	1.85B	1.92B	2.09B
EBITDA	1.25B	1.25B	1.46B	1.20B	1.19B	1.41B
Net Income	740.63M	739.42M	852.70M	741.99M	766.20M	885.22M
Balance Sheet
Total Assets	5.36B	5.80B	6.05B	5.55B	5.01B	4.29B
Cash, Cash Equivalents and Short-Term Investments	1.88B	2.13B	2.49B	2.49B	1.58B	2.12B
Total Debt	96.44M	93.52M	86.26M	114.31M	141.39M	73.64M
Total Liabilities	723.71M	1.07B	965.03M	1.01B	896.34M	773.75M
Stockholders Equity	4.50B	4.57B	4.82B	4.32B	3.81B	3.30B
Cash Flow
Free Cash Flow	675.30M	665.07M	634.65M	858.28M	197.46M	872.76M
Operating Cash Flow	965.73M	917.71M	959.00M	1.27B	829.49M	1.20B
Investing Cash Flow	-518.39M	-147.67M	-153.78M	-573.03M	-922.06M	-72.51M
Financing Cash Flow	-789.12M	-1.20B	-384.21M	-416.65M	-299.03M	-210.18M

Yihai International Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1579, the sentiment is Positive. The current price of 12.93 is below the 20-day moving average (MA) of 12.94, above the 50-day MA of 12.61, and above the 200-day MA of 12.93, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 69.80 is Neutral, neither overbought nor oversold. The STOCH value of 82.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1579.

Yihai International Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1112	67 Neutral	HK$8.83B	-27.97	-4.66%	1.77%	-2.15%	-202.71%
1475	67 Neutral	HK$7.22B	34.76	5.55%	1.41%	7.29%	-33.19%
1579	66 Neutral	HK$13.43B	16.78	16.58%	5.89%	1.10%	-7.88%
2517	66 Neutral	HK$10.64B	30.68	10.58%	4.45%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0345	58 Neutral	HK$6.78B	29.27	7.63%	2.21%	-3.39%	91.63%
1610	58 Neutral	HK$7.42B	11.39	6.29%	―	100.45%	2.89%