HAI TIAN(SH:603288) Xin Hua Wang·2025-08-12 05:37Core Viewpoint - Haitan Flavor Industry's (海天味业) debut on the Hong Kong stock market has faced significant challenges, with its stock price dropping below the issue price within the first two days of trading, contrasting with the recent trend of successful listings by other consumer companies [1][3]. Group 1: IPO Details - Haitan Flavor Industry's IPO attracted considerable interest, with cornerstone investors subscribing to 1.29 billion shares, accounting for nearly 50% of the total shares offered, raising approximately 4.7 billion HKD [2]. - The IPO was priced at 36.30 HKD per share, representing a 15% discount compared to its recent A-share price of around 40 HKD [2]. - The public offering saw over 390,000 investors, with a subscription rate of 918.15 times for the Hong Kong portion and 22.93 times for the international portion, marking a record high for Hong Kong IPOs this year [3]. Group 2: Market Performance - Despite the strong initial interest, the stock price fell to 35.80 HKD on June 20, 2023, indicating a lack of sustained investor confidence in the secondary market [1][3]. - The company's market capitalization has decreased by over 60% from its peak, with the current A-share price around 40 HKD, leading to its removal from the A-share SSE 50 Index [5]. Group 3: Business Strategy and Market Position - Haitan Flavor Industry aims to enhance its global brand image and competitiveness through the funds raised from the IPO, with plans to invest in product development, technology upgrades, and expanding its international market presence [6]. - The company has maintained its position as the largest condiment producer in China for 28 consecutive years, with a market share of 4.8% in the domestic market and ranking fifth globally [4]. - However, the company has faced stagnation in revenue growth, with negative growth reported from 2021 to 2023, and a decline in net profit for two consecutive years [4][5]. Group 4: Future Outlook - Analysts express cautious optimism about Haitan Flavor Industry's potential for recovery, citing its strong brand and channel advantages, but also highlight risks from market competition and consumer demand [7]. - The global condiment market is projected to grow at a compound annual growth rate of 3.2% from 2019 to 2024, indicating a competitive landscape that may challenge the company's growth ambitions [8].