Core Viewpoint - The upcoming IPO of Haitian Flavor Industry in Hong Kong reflects the company's strong market position and growth potential, particularly driven by its flagship product, Haitian Jinbiao Soy Sauce [1] Company Overview - Company Name: Haitian Flavor Industry (03288.HK) [2] - Industry: Food and Beverage [2] - Market Capitalization: HKD 203.83 billion to HKD 211.41 billion [2] - Price-to-Earnings Ratio: 31 times [2] - IPO Date: June 11 to June 16 [2] - Listing Date: June 19 [2] IPO Details - Total Shares Issued: 263 million shares, with 10% for public offering and 90% for international placement [2] - Offering Price Range: HKD 35 to HKD 36.3 [2] - Minimum Subscription Amount: HKD 3,666.6 [2] - Green Shoe Option: Yes [2] - Cornerstone Investors: 8 investors subscribed for 49.75% of the offering [2] Market Position and Product Strength - Haitian Jinbiao Soy Sauce holds a 13.2% market share in the soy sauce category, making it the global leader [3] - The product is known for its high quality, utilizing non-GMO soybeans and premium wheat, combined with traditional fermentation and modern automation [3] - Financial performance shows a recovery trend with revenues of CNY 256.10 billion, CNY 245.59 billion, and CNY 269.01 billion from 2022 to 2024, and a net profit of CNY 62.03 billion, CNY 56.42 billion, and CNY 63.56 billion in the same period [3] Growth Strategies - The company is focusing on health-oriented and premium product lines, with a 33.6% revenue increase in its zero-additive and organic series in 2024 [5] - The launch of a low-salt version of Jinbiao Soy Sauce caters to health-conscious consumers [5] - The IPO price is set at a discount of 20% to 23% compared to A-shares, indicating the company's commitment to the Hong Kong market [5] Future Outlook - The IPO is expected to raise HKD 9.56 billion at the upper price limit, with a potential first-day increase of around 20% [6] - The company aims to increase its overseas revenue share to 15% within three years, supported by its strong export presence in 90 countries [6] - The listing is seen as a strategic move to enhance global presence and product innovation, reinforcing the company's leadership in the traditional condiment market [6]