Core Viewpoint - The initial public offering (IPO) of Haitian Flavoring and Food Company saw mixed performance, with its stock price experiencing volatility and only a slight increase on its first trading day, indicating investor caution despite high initial interest [1][3][5]. Company Performance - On its first day of trading in Hong Kong, Haitian's stock closed at HKD 36.5 per share, a minor increase of 0.55%, with a total market capitalization of HKD 213.15 billion [1]. - In contrast, the company's A-share price fell to CNY 38.69, resulting in a market cap of CNY 225.93 billion [2]. - The IPO attracted significant interest, with over 390,000 subscriptions and a financing subscription multiple of nearly 700 times on the Futu platform, surpassing other major IPOs this year [3][4]. Market Sentiment - Despite the high demand during the subscription phase, the stock did not maintain a bullish trend post-listing, reflecting a cautious investor sentiment towards the company's growth potential [3][5]. - The static price-to-earnings ratio at the IPO price was reported to be 28-30 times, which is considered high compared to other consumer companies, leading to a mismatch between the company's fundamentals and its valuation [5][8]. Growth Challenges - Haitian Flavoring's growth prospects are constrained by a saturated market for condiments, with the global seasoning market projected to grow at a compound annual growth rate (CAGR) of only 3.2% from 2019 to 2024 [7][8]. - The company plans to allocate HKD 18.54 billion (20% of the raised funds) towards establishing a global brand presence and expanding sales channels, particularly in Southeast Asia and Europe [7]. - The revenue from the soy sauce segment, which is the largest contributor to Haitian's income, is under pressure, with a projected revenue of CNY 13.758 billion for 2024, reflecting an 8.87% year-on-year increase, but with a decline in price per ton [8].