HAI TIAN(SH:603288) Sou Hu Cai Jing·2025-06-12 07:56Core Viewpoint - Haitian Flavor Industry (603288.SH) has initiated its Hong Kong IPO process, with a price range set between HKD 35.00 and HKD 36.30, reflecting a discount of 20.36% to 23.21% compared to its A-share closing price [1][3] Company Overview - Haitian Flavor Industry originated from the Guangdong Province Foshan Haitian Soy Sauce Factory established in 1955, focusing on the production and sale of condiments [2] - The company went public on the Shanghai Stock Exchange in February 2014 after completing a shareholding reform in 2010 [2] - Haitian Flavor's product line includes approximately 1,450 SKUs, with soy sauce and oyster sauce leading in both global and Chinese markets [2] Financial Performance - For the fiscal year 2024, Haitian Flavor reported a revenue increase of 9.53%, reaching CNY 26.901 billion, and a net profit attributable to shareholders of CNY 6.344 billion, reflecting a growth of 12.75% [2] - The company declared a dividend of CNY 3.66 billion, resulting in a dividend yield of 2.95% based on its A-share market capitalization [2] IPO Details - The IPO will issue 263 million H-shares, accounting for 4.5% of the expanded share capital, with 6% allocated for local sales in Hong Kong and 94% for international markets [1] - The total expected fundraising amount is HKD 9.271 billion [1] - The subscription period starts on June 11 and ends on June 16, with trading set to commence on June 19 [1] Market Context - Despite a weaker performance in the A-share market, the Hong Kong IPO market has shown strength, with recent new consumer stocks performing well [3] - Although several condiment companies are listed in Hong Kong, Haitian Flavor's scale and profitability are significantly higher [3] - Key cornerstone investors, including Hillhouse Capital and Singapore's GIC, have committed to subscribing a total of HKD 4.6675 billion in shares, providing strong support for the IPO [3] Valuation Comparison - Haitian Flavor's current share price is HKD 35.65, with a market capitalization of HKD 207.6 billion and a projected net profit of CNY 6.344 billion for 2024, resulting in a price-to-earnings ratio of 29.96 [4]