Core Viewpoint - The report from CMB International initiates a "Buy" rating for Haitian Flavor Industry (03288) with a target price of HKD 39, driven by the recovery in the catering channel, product innovation, and overseas expansion, projecting an approximate 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 due to multiple drivers including catering channel recovery, product innovation, and overseas expansion [1] - The company is projected to maintain a net profit growth rate of around 10% [1] Profitability and Efficiency - There is potential for improvement in gross margin and operating profit margin, driven by declining raw material costs and efficiency enhancements [1] Market Position and Distribution - As of the end of 2024, the company will have over 6,700 distributors, ensuring comprehensive coverage of major regions in the country, which supports stable national 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 products, thereby consolidating its competitive advantage [1] Overseas Expansion Strategy - The company primarily serves overseas markets through a trade model, and short-term overseas expansion is expected to benefit from the trend of domestic catering brands going abroad [1] - The overseas business is still in its early stages, with expectations of double-digit CAGR in overseas revenue over the next three years, which will increase the proportion of overseas revenue [1]