Investment Rating - The investment rating for the company is "6.3" based on various criteria [6]. Core Insights - Haidilao is a leading player in the Chinese condiment market, holding the position of the largest condiment company in China and the fifth largest globally, with a diverse product range including soy sauce, oyster sauce, and other seasonings [1][2]. - The company has shown a revenue forecast of 245 billion RMB for 2023, 269 billion RMB for 2024, and 83 billion RMB for Q1 2025, with growth rates of -3.3%, 10.4%, and 9% respectively [1]. - The company has a strong market presence with a 4.8% market share in China's condiment market and a 13.2% share in the soy sauce market [2]. Company Overview - Haidilao has developed a comprehensive product matrix with over 1,450 SKUs and has cultivated seven product lines each generating over 1 billion RMB in revenue [1]. - The company has a robust distribution network with 6,707 distributors, covering nearly 100% of prefecture-level cities and about 90% of county-level cities in China [3]. - The company is focused on both domestic and international markets, with plans to expand globally [1]. Industry Status and Outlook - The Chinese condiment market is projected to grow from 408.1 billion RMB in 2019 to 498.1 billion RMB in 2024, with a compound annual growth rate (CAGR) of 4.1% [2]. - The global condiment market is valued at approximately 21,438 billion RMB, with a growth rate of about 3.2% [2]. - The competitive landscape in the condiment industry is fragmented, with Haidilao leading the market in China [2]. Advantages and Opportunities - The company benefits from strong brand recognition and a leading position in the industry, supported by a well-optimized supply chain that enhances production efficiency and reduces costs [3]. - The company's corporate culture emphasizes simplicity, practicality, and openness, which supports long-term sustainable development [3]. Investment Recommendations - The cornerstone investors for the IPO include prominent firms such as Hillhouse, GIC, and UBS Asset Management, accounting for approximately 48.8%-50.66% of the offering [5]. - The IPO price range is set between 35-36.3 HKD, with a post-IPO market capitalization estimated at 9.2-9.5 billion HKD [5]. - The expected net profit for 2025 is around 7 billion RMB, corresponding to a price-to-earnings (PE) ratio of 29-30x, indicating a reasonable valuation compared to the A-share market [5].
海天味业（03288）：IPO点评报告