Yihai Kerry Arawana (300999): Both Core Businesses Post Volume and Price Growth in 1H26
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Key Views
Both core businesses delivered volume and price gains. Kitchen Foods revenue reached RMB 77.424 billion (+8.21%) on 12.438 million tons of sales (+4.79%) and a 3.3% higher ASP; Feed Ingredients & Oils Technology posted revenue of RMB 44.512 billion (+3.09%) on 15.126 million tons (+3.05%). The expense ratio fell 0.25pct to 4.30%. A one-off RMB 263 million net gain from selling 50% stakes in Shanghai and Kunshan Kellogg's to Mars Wrigley boosted results; excluding it, net profit was RMB 2.031 billion, up 15.71%. R&D spending rose 6.96% to RMB 128 million, backing the health-oriented product strategy.
Outlook
Huatai applies 35x 2026E PE (comparables average 29.0x) and maintains 2026–2028 net profit forecasts of RMB 4.75/6.88/8.53 billion. Risks: raw material price volatility, food safety, litigation uncertainty, and weaker-than-expected demand recovery.
Recommended Securities
Valuation references (not rated): Haitian Flavouring (2026E PE 26.92x), Hengshun Vinegar (44.57x), Haid Group (15.57x).
Key exhibits
Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4
