HK-listed chicken essence maker Yihai falls, Daiwa downgrades

Yihai International Holding

22/08/2019 05:20

** Shares of China's hot pot soup flavoring and chicken
essence maker Yihai International Holding Ltd  1579.HK  fall as
much as 8.5% to HK$43.25, their lowest since Aug 16
    ** Daiwa downgrades Yihai to "hold" from "outperform",
saying it expects to see gross margin pressure in 2H19 from the
company's new plant, while co could see a re-rating on positive
earnings revisions and less reliance on a single customer
    ** As of last close, stock had risen 146.9% this year
    ** Yihai posts a 54.1% rise in first-half net profit with
revenue surging 64.9%; says it seeks to buy potential
high-quality businesses in product R&D, product portfolio, and
channel expansion  urn:newsml:reuters.com:*:nFWN25G09J
    ** Beijing-based Yihai has outperformed the Hang Seng
Commerce & Industry Index sector  .HSNC  by 16.6 percentage
points in the past one month
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
eases 0.7%
    ** The Hang Seng China enterprises index  .HSCE  slides
0.5%, and the benchmark index  .HSI  falls 0.9%

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)