Daiwa has released a research report stating that YIHAI INTL (01579) is a leader in China's composite condiment industry, focusing on hot pot seasonings, Chinese-style composite condiments, and convenient ready-to-eat products. The company is also a key hot pot base supplier for Haidilao (06862) and Super Hi International (09658). Daiwa has initiated coverage with a "Buy" rating and a target price of HK$18.7.

The brokerage firm noted that since the fourth quarter of 2025, both third-party and related-party sales at YIHAI INTL have shown a recovery, primarily driven by supply-side optimization in the Chinese market. This is because the competitive landscape in the condiment industry has eased over the past few years. Daiwa believes that a 7% forecasted dividend yield for 2026 provides good support, and accelerated revenue growth has brought the stock back onto the radar of some investors.

Daiwa estimates that the company's sales and net profit for the first half of the year will both grow 13% year-on-year. Due to gross margin expansion and improved efficiency in sales expense utilization, these factors should drive core operating profit growth in the first half to outpace revenue growth. For the full year, revenue is expected to be 7.367 billion yuan, with net profit reaching 975 million yuan.