HK Stock Market Move | YIHAI INTL(01579) increases by over 6% again, up nearly 30% for the year. Improvements in HAIDILAO's operations will drive the recovery of related businesses of Yihai.

YIHAI INTL (01579) rose by more than 6%, with a cumulative increase of nearly 30% for the year. As of the time of writing, it was up 3.36% to HK$16.93, with a trading volume of HK$5.87 billion. On the news front, on January 13th, HAIDILAO announced that its founder, Zhang Yong, would take over as the company's CEO, replacing Gou Yiqun with immediate effect. Industrial pointed out that HAIDILAO and YIHAI INTL are sister companies, with Mr. Zhang Yong and his wife being major shareholders of YIHAI INTL. The management teams and operations of the two companies are independent of each other. Cathay Haitong released a research report stating that the executive team adjustment at HAIDILAO has sent a positive signal, and the return of the founder is expected to further accelerate improvements in HAIDILAO's operations, potentially directly boosting the concurrent recovery of YIHAI's related businesses. In addition, the current profit margins of related businesses are already very low, so it is expected that there is very limited room for further decrease.