Core Viewpoint - The financial performance of Haitian Flavor Industry (603288.SH) shows revenue and net profit growth, but the market response has been lukewarm due to concerns over slowing growth in the soy sauce segment and overall restaurant consumption pressures [1][3]. Financial Performance - In the first three quarters of 2025, the company achieved revenue of 21.628 billion yuan, a year-on-year increase of 6.02%, and a net profit attributable to shareholders of 5.322 billion yuan, up 10.54% [1]. - The third quarter revenue was 6.398 billion yuan, growing by 2.48%, with net profit of 1.408 billion yuan, a 3.40% increase, both showing a significant slowdown compared to the first half of the year [3]. Soy Sauce Business - The soy sauce segment, which accounts for 51.6% of total revenue, generated 11.156 billion yuan in the first three quarters, up 7.91%. However, the growth rate for the third quarter was only 4.9%, a sharp decline from 9.2% in the first half [3]. - The overall market for soy sauce is entering a phase of stock competition, limiting growth potential [7]. Market Challenges - The decline in restaurant consumption, with a national growth rate of only 3.3% in the first three quarters and a mere 0.9% in September, has put pressure on sales channels for Haitian [3]. - The company faces increased competition from niche products that appeal to health-conscious consumers, impacting its market share [3]. Strategic Adjustments - To counteract traditional channel pressures, the company is focusing on "channel sinking" and "product upgrading," targeting community retail and online sales [4]. - Online channel revenue reached 1.245 billion yuan in the first three quarters, a 32.11% increase, indicating a shift towards digital sales strategies [4]. Cost Management - Despite slowing revenue growth, the company improved its profitability, with a gross margin of 39.97%, up 3.19 percentage points year-on-year, and a net profit margin of 24.64%, up 0.97 percentage points [5]. - The improvement in profitability is attributed to cost optimization, particularly in raw materials like soybeans and sugar, which have seen price declines [5]. International Expansion - The company has been investing in overseas market development, with less than 5% of revenue coming from international sales as of June 2025 [8]. - Plans include establishing production bases in Indonesia and Europe, with a focus on localizing supply chains to reduce costs [8][9]. Long-term Outlook - The company’s overseas business is expected to take 2-3 years to mature, with minimal short-term revenue contributions anticipated [9]. - Investors are concerned about the company's ability to find new growth drivers in high-end products and overseas markets amidst a saturated soy sauce market [10].