HAI TIAN(SH:603288) Zhi Tong Cai Jing·2025-11-20 02:15Core Viewpoint - The report from CMB International initiates a "Buy" rating for Haitian Flavor Industry (603288) with a target price of HKD 39, driven by recovery in the restaurant channel, product innovation, and overseas expansion, projecting an approximately 8% compound annual growth rate (CAGR) in revenue from 2024 to 2027 [1] Revenue and Growth Projections - Revenue is expected to achieve about 8% CAGR from 2024 to 2027 [1] - Net profit is anticipated to maintain a growth rate of around 10% [1] Profitability and Efficiency - Improvement in gross margin and operating profit margin is expected due to declining raw material costs and enhanced efficiency [1] Market Position and Distribution - By the end of 2024, the company is projected to have over 6,700 distributors, ensuring comprehensive coverage across major regions in China [1] - Strong distribution capabilities are expected to support stable nationwide sales [1] Product Innovation and Health Trends - The ongoing health trend is driving product structure upgrades, with the company leveraging its leading R&D capabilities to continuously innovate [1] Overseas Expansion Potential - The company primarily serves overseas markets through a trade model, with short-term overseas expansion likely benefiting from the trend of domestic restaurant brands going global [1] - The overseas business is still in its early stages, with expectations of double-digit CAGR in overseas revenue over the next three years, increasing the proportion of overseas revenue [1]