HAI TIAN(SH:603288) Sou Hu Cai Jing·2025-06-20 12:19Core Viewpoint - The initial public offering (IPO) of Haitian Flavoring and Food Co., Ltd. faced a dramatic decline in stock performance after a strong start, reflecting concerns about its growth potential and market conditions [3][4][6]. Company Performance - Haitian Flavoring opened at 37.5 HKD, a 3.3% increase from the issue price of 36.3 HKD, but later fell below the issue price, closing at 36.5 HKD on the first day [3][6]. - On June 20, the stock continued to decline, closing at 38.51 HKD, with a total market capitalization of 224.9 billion HKD [3][6]. - The IPO raised over 10 billion HKD, with 918.15 times oversubscription during the public offering, indicating high initial investor interest [3][8]. Market Context - Analysts suggest that Haitian Flavoring's growth is hindered by domestic overcapacity and limited international demand, leading to poor performance expectations [4][10]. - The company aims to increase its international revenue share from less than 7% in 2024 to 15% within three years, targeting Southeast Asia as a primary market [14][17]. Leadership Transition - Cheng Xue, known as the "Soy Sauce Queen," took over leadership in September 2024, marking a significant transition for the company [11][12]. - Cheng holds approximately 13% of the company's shares and has been instrumental in its growth trajectory [11][12]. Financial Highlights - In 2024, Haitian Flavoring reported revenue of 26.9 billion CNY, a 9.53% increase year-on-year, and a net profit of 6.34 billion CNY, up 12.75% [14]. - The first quarter of 2025 continued this growth trend, with revenue of 8.32 billion CNY and a net profit of 2.20 billion CNY, reflecting increases of 8.08% and 14.77%, respectively [15]. Inventory Concerns - Despite revenue growth, the company faces challenges with rising inventory levels, particularly a 44.69% increase in oyster sauce stock, which could pose operational risks [16].