Investment Rating - The report maintains a "Buy" rating for Yihai International (1579 HK) [3] Core Views - Yihai International's 2023 revenue was flat YoY at RMB 6 15 billion while net profit attributable to shareholders increased 14 9% YoY to RMB 853 million [3] - The company significantly increased its dividend payout ratio from 25% in 2022 to 90% in 2023 [5] - Online channels and overseas markets are expected to drive growth in 2024 with Southeast Asia as a key focus [4][6] Business Performance Revenue Breakdown - Hotpot seasoning revenue increased 11 7% YoY to RMB 4 092 billion accounting for 66 6% of total revenue [5] - Chinese compound seasoning revenue grew 9 2% YoY to RMB 621 million representing 10 1% of total revenue [5] - Instant food revenue declined 25 8% YoY to RMB 1 387 billion contributing 22 6% of total revenue [5] Profitability - Gross margin improved by 1 4 percentage points to 31 6% in 2023 driven by lower raw material costs [5] - Net profit margin attributable to shareholders increased by 1 8 percentage points to 13 9% [5] Growth Drivers Online Channel - The company appointed a new online channel head in November 2023 and plans to launch online-exclusive products [4] - Online channel is expected to expand rapidly in 2024 with both sales and brand promotion functions [4] Overseas Market - Southeast Asia is a key focus with Thailand factory starting production in 2023 [4] - The company obtained halal certification and plans to develop Muslim markets such as Indonesia [4] Small B-end Business - The company established a small B-end sales team in 2023 and expects this segment to double in 2024 [4] Financial Forecasts - Revenue is expected to grow 13 9% YoY to RMB 7 001 billion in 2024 [7] - Net profit attributable to shareholders is forecasted to increase 13 4% YoY to RMB 967 million in 2024 [7] - EPS is projected to grow from RMB 0 82 in 2023 to RMB 0 93 in 2024 [7] Valuation - The current stock price implies a 13x P E ratio for 2024 [4]
2023年年报点评：大幅提升分红比例，24年线上及海外表现值得期待