[ET Net News Agency, 25 March 2021] Jefferies Research cut its target price for Yihai
International (01579) to HK$96 from HK$120 and maintained its "buy" rating.
The research house said management admitted that the 2H sales slowdown was partly due to
management problems and they aim to improve its operation management and strengthen the
incentive efficiency of each business line.
In 2021, Jefferies forecasted 38%/22% growth in sales/net profit. It expects increasing
pressure on margins due to margin decline in sales from related parties, unfavorable raw
material price trend, and higher expense ratio. Jefferies cut its earnings forecasts in
2021-22 by 16%-17%. (KL)