Sichuan Teway Food (SH:603317) Sou Hu Cai Jing·2025-09-09 12:23Core Viewpoint - Tianwei Foods is planning to issue H-shares and aims to list on the Hong Kong Stock Exchange, indicating a serious commitment to international capital platforms after previously pausing plans for a GDR issuance in Switzerland due to changing market conditions [1][3]. Company Overview - Tianwei Foods is led by founders Deng Wen and Tang Lu, who hold over 67% of the shares and have a combined wealth of 11.5 billion yuan, ranking 2295th on the 2025 Hurun Global Rich List [3]. - Since its A-share listing in 2019, the founders have conducted five share transfers, cashing out approximately 1.4 billion yuan [3]. - The company has established itself as a leader in the compound seasoning market, with well-known brands such as "Hao Ren Jia" and "Da Hong Pao," offering over 100 products, primarily in hot pot and Chinese cuisine seasonings, which contribute 95% of its revenue [3][5]. Market Position and Performance - The compound seasoning market is projected to grow significantly, with a market size exceeding 230 billion yuan in 2024 and expected to reach nearly 340 billion yuan by 2027, reflecting a compound annual growth rate of over 13% [5]. - In 2024, Tianwei Foods is expected to achieve revenue of 3.476 billion yuan, a year-on-year increase of 10.4%, with net profit rising by 36.7% to 625 million yuan [5]. - The company reported a strong rebound in the second quarter of 2025, with revenue and net profit increasing by 21.93% and 62.72%, respectively [5]. Challenges and Concerns - In the first quarter of 2025, Tianwei Foods experienced a decline in both revenue (down 24.8%) and net profit (down over 57%), raising concerns about its market stability [7]. - Despite claims of selling products in over 50 countries and regions, the company has not disclosed overseas revenue in its financial reports, leading to skepticism about its international expansion [7]. - Industry experts have noted that Tianwei Foods has a small scale and low profit margins, making it vulnerable to risks and overly reliant on hot pot base products, with challenges in penetrating mainstream markets in Europe and the U.S. due to differing taste preferences [7]. IPO Timing and Market Conditions - The current environment is favorable for Tianwei Foods' IPO, as the Hong Kong market is showing signs of recovery, particularly in the food and beverage sector, which is undergoing valuation adjustments [8]. - The successful "A+H" listing of Haidilao has provided confidence to potential market entrants like Tianwei Foods [8].