HAI TIAN(SH:603288) Guan Cha Zhe Wang·2025-05-27 10:06Core Viewpoint - The Hong Kong capital market is experiencing a revival in 2025, with a surge of new listings, including the anticipated IPO of Haitian Flavor Industry Co., Ltd. (Haitian), marking the sixth "A+H" listed company this year [1][3]. Group 1: IPO Process and Company Background - Haitian submitted its IPO application to the Hong Kong Stock Exchange (HKEX) on January 13, 2025, and received approval from the China Securities Regulatory Commission (CSRC) on April 28, 2025 [3]. - The company aims to raise between $1 billion to $2 billion through its IPO, depending on market conditions [3]. - Haitian, founded in 1955, specializes in providing high-quality condiments, including soy sauce, oyster sauce, and other seasoning products [3]. Group 2: Financial Performance and Market Position - In 2024, Haitian reported total revenue of 26.901 billion yuan, a year-on-year increase of 9.53%, and a net profit of 6.069 billion yuan, up 12.51% [5]. - The company's gross profit margin improved from 33.9% in 2023 to 36.2% in 2024, surpassing the 34.9% margin of 2022 [5]. - In Q1 2025, Haitian achieved revenue of 8.315 billion yuan, an 8.08% increase year-on-year, and a net profit of 2.147 billion yuan, growing by 15.42% [5]. Group 3: Market Leadership and Competitive Landscape - According to Frost & Sullivan, Haitian is the undisputed leader in China's condiment market, holding a market share of 4.8% in 2024, which is more than double that of its closest competitor [6]. - The overall market size for condiments in China reached 498.1 billion yuan in 2024, with Haitian ranking fifth globally by revenue, holding a 1.1% market share [6]. - The trend of A-share companies seeking secondary listings in Hong Kong is gaining momentum, with five companies successfully listed in 2025, reflecting a significant increase in IPO activity [6][7]. Group 4: Strategic Use of IPO Proceeds - Haitian plans to use the funds raised from the IPO for product development, technological upgrades, capacity expansion, and enhancing its global brand presence [8]. - The company aims to improve its sales network and operational capabilities, as well as to enhance its supply chain efficiency [8]. - The revival of the Hong Kong IPO market is seen as a crucial opportunity for companies to secure financing amid market volatility [8].