Yihai International Holding Ltd. (1579) AI Stock Analysis

• Market Cap: HK$15.00B
• Dividend Yield: 5.89%
• Average Volume (3M): 3.59M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.28
• Revenue Growth: 1.10%
• EPS Growth: -7.88%
• Country: HK
• Employees: 3,163
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.31
• 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$19.11
• Price Target Upside: 47.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$16.00 ▲(23.74% 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

Strong balance sheet and low leverage

Extremely low leverage (debt/equity 0.02) and a high equity ratio (78.83%) provide durable financial flexibility. This structural strength supports investment, working capital absorption and resilience through demand cycles without relying on frequent external financing, sustaining long-term operations.

Consistent revenue growth and robust margins

Sustained top-line growth (~6.4% Y/Y) combined with stable gross margins (31–33%) and healthy EBIT/EBITDA margins (>16%/>19%) indicate enduring operational efficiency and pricing power. These structural margin levels underpin long-term cash generation potential assuming steady demand.

Recognized brand and diversified distribution

A strong consumer brand in condiments plus multi-channel distribution (supermarkets, e-commerce, food service) creates durable market access. Broad channels and partnerships reduce single-channel risk, support scale economies and help sustain market share as hot pot and condiment demand grows structurally in China and abroad.

Negative Factors

Operating cash flow shortfall

A lapse to zero operating cash flow in 2024 is a significant structural liquidity concern. Without recurring OCF, the company faces constrained ability to fund capex, pay dividends, or absorb shocks, increasing reliance on financing and weakening the practical value of reported accounting profits over the medium term.

Declining profitability metrics

A drop in net margin and a falling ROE signal structural pressure on returns, possibly from higher costs, mix shifts or pricing squeeze. Weaker profitability reduces reinvestment capacity and shareholder returns, and if persistent can erode competitive positioning despite solid gross margins.

Negative EPS growth

Negative EPS growth (~-7.9%) indicates earnings contraction despite revenue growth. This mismatch can reflect margin erosion, non-recurring charges, or cost inflation. Persisting EPS decline undermines long-term return expectations and may constrain strategic initiatives funded from internal earnings.

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: Negative
• STOCH: Neutral

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 14.51, below the 50-day MA of 13.32, and below the 200-day MA of 13.09, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 76.63 is Negative, neither overbought nor oversold. The STOCH value of 79.39 is Neutral, 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$9.81B	-31.29	-4.66%	1.77%	-2.15%	-202.71%
1475	67 Neutral	HK$7.62B	36.66	5.55%	1.41%	7.29%	-33.19%
1579	66 Neutral	HK$15.00B	17.73	16.58%	5.89%	1.10%	-7.88%
2517	66 Neutral	HK$11.44B	33.89	10.58%	4.45%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0345	58 Neutral	HK$7.40B	32.28	7.63%	2.21%	-3.39%	91.63%
1610	58 Neutral	HK$7.65B	11.74	6.29%	―	100.45%	2.89%

Yihai International Holding Ltd. Corporate Events

Yihai International Launches 2026 Share Award Scheme Using Existing Shares

Yihai International Holding Ltd. has adopted a 2026 Share Award Scheme aimed at recognising and retaining key employees, related entities and service providers, while attracting new talent to support the group’s ongoing development. The 10-year scheme, effective from 27 January 2026, allows awards of existing shares only—acquired on the market by a trustee or transferred from significant shareholders—up to a total of 10% of the company’s issued share capital, with any single participant capped at 1% within any 12-month period; vesting conditions, pricing (if any) and payment terms are left to the board’s discretion, and unvested shares held by the trustee will not vote on shareholder matters, underscoring the company’s focus on incentivisation without diluting existing shareholders.

The most recent analyst rating on (HK:1579) stock is a Hold with a HK$16.50 price target. To see the full list of analyst forecasts on Yihai International Holding Ltd. stock, see the HK:1579 Stock Forecast page.