Analyst

Steve

Equity Bottom-Up

Foshan Haitian Flavouring & Food / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/foshan-haitian-flavouring-food-co-ltd" target="_blank" data-smartkarma-citation="entities:15577:1" rel="noopener">Foshan Haitian Flavouring &amp; Food (603288 CH)</a>, the largest condiment player in China is facing structural weakening of moat from a changed operating environment post-COVID.  </li>
<li>Both catering and home consumption segments are faced with structural growth pressures that are difficult to solve for the company.  </li>
<li>Expect further earnings weakness and derating in valuation multiple in the near term.  </li>
</ul>



Foshan Haitian Flavouring &amp; Food (603288 CH), the largest condiment player in China is facing structural weakening of moat from a changed operating environment post-COVID.  
Both catering and home consumption segments are faced with structural growth pressures that are difficult to solve for the company.  
Expect further earnings weakness and derating in valuation multiple in the near term.  


Haitian Flavouring (603288 CH):  Weakening Moat With Further Derating Likely

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>Consumer Discretionary (inflows of $2,146 million), Financials (inflows of $1,619 million), Consumer Staples (inflows of $1,100 million) led the inflows while led the outflows.</li>
<li>We highlight flows for Moutai, CATL, BYD, Wuliangye, East Money, Haitian Flavoring, Luxshare, Longi Green, Wus Printed, Yonyou Network.</li>
</ul>


We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.
Consumer Discretionary (inflows of $2,146 million), Financials (inflows of $1,619 million), Consumer Staples (inflows of $1,100 million) led the inflows while led the outflows.
We highlight flows for Moutai, CATL, BYD, Wuliangye, East Money, Haitian Flavoring, Luxshare, Longi Green, Wus Printed, Yonyou Network.


Northbound Flows Monthly (July): $7.3bn Inflows

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of July 28th.</li>
<li>We estimate the weekly inflows to be US$5,187.1 million, led by financials, consumer staples, industrials sectors, and offset by information technology.</li>
<li>We highlight flows for Moutai, CATL, East Money Information, Wuliangye, Ping An Insurance, Haitian Flavouring, LUxshare, BOE.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of July 28th.
We estimate the weekly inflows to be US$5,187.1 million, led by financials, consumer staples, industrials sectors, and offset by information technology.
We highlight flows for Moutai, CATL, East Money Information, Wuliangye, Ping An Insurance, Haitian Flavouring, LUxshare, BOE.


Northbound Flows (Jul 28th): $5.2bn Inflows

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>Performance of China A-share consumer staples stayed lacklustre in the last three months, underperforming benchmark indexes. Negative consumer sentiments have weighted on them. </li>
<li>The pullback in valuations, however, has made them look more appealing now. Excluding <a href="https://www.smartkarma.com/entities/foshan-haitian-flavouring-food-co-ltd" target="_blank" data-smartkarma-citation="entities:15577:1" rel="noopener">Foshan Haitian Flavouring &amp; Food (603288 CH)</a>, there has been no earnings downgrades. </li>
<li>Both <a href="https://www.smartkarma.com/entities/shanxi-xinghuacun-fen-wine-factory-co" target="_blank" data-smartkarma-citation="entities:9288:1" rel="noopener">Shanxi Xinghuacun Fen Wine Factory Co (600809 CH)</a> and <a href="https://www.smartkarma.com/entities/anjoy-foods-group-co-ltd" target="_blank" data-smartkarma-citation="entities:30110:1" rel="noopener">Fu Jian Anjoy Foods Group (603345 CH)</a> have pre-announced 1H23 results which showed good 2Q23 earnings.</li>
</ul>


Performance of China A-share consumer staples stayed lacklustre in the last three months, underperforming benchmark indexes. Negative consumer sentiments have weighted on them. 
The pullback in valuations, however, has made them look more appealing now. Excluding Foshan Haitian Flavouring &amp; Food (603288 CH), there has been no earnings downgrades. 
Both Shanxi Xinghuacun Fen Wine Factory Co (600809 CH) and Fu Jian Anjoy Foods Group (603345 CH) have pre-announced 1H23 results which showed good 2Q23 earnings.


China A-Share Consumer Staples: The Most Challenging Time Is Behind

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of July 14th.</li>
<li>We estimate the weekly inflows to be US$2,869.4 million, led by consumer discretionary, consumer staples, financials sectors.</li>
<li>We highlight flows for Moutai, CATL, Wuliangye, China Yangtze Power, China Telecom, Inspur Electronic Information Industry, Tcl Technology, China Mobile, BYD, Haitian Flavouring, Wus Printed Circuit (Kunshan).</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of July 14th.
We estimate the weekly inflows to be US$2,869.4 million, led by consumer discretionary, consumer staples, financials sectors.
We highlight flows for Moutai, CATL, Wuliangye, China Yangtze Power, China Telecom, Inspur Electronic Information Industry, Tcl Technology, China Mobile, BYD, Haitian Flavouring, Wus Printed Circuit (Kunshan).


Northbound Flows (Jul 14th): Moutai, CATL, Wuliangye, Yangtze Power, China Telecom, Haitian

China

Foshan Haitian Flavouring & Food Company Ltd. manufactures food seasonings. The Company develops, produces, and distributes condiments including soy sauce, oyster sauce, vinegar, flavoring sauce, chicken stock, monosodium glutamate, and oil.

Foshan Haitian Flavouring & Food (603288 CH)

Price Gauge
52-week Range	0.00 - 0.00
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Foshan Haitian Flavouring & Food (603288 CH)

Haitian Flavouring (603288 CH): Weakening Moat With Further Derating Likely

Foshan Haitian Flavouring & Food, the largest condiment player in China, likes sees further derating in valuation multiple due to a weakening moat.

Steve

Northbound Flows Monthly (July): $7.3bn Inflows

We analyzed the Shanghai/Shenzhen Connect Scheme for July and highlight flows for Moutai, CATL, BYD, Wuliangye, East Money, Haitian Flavoring,...

Ke Yan, CFA, FRM

Northbound Flows (Jul 28th): $5.2bn Inflows

We analyzed the Shanghai/Shenzhen Connect Scheme for last week and highlight flows for Moutai, CATL, East Money Information, Wuliangye, Ping An...

Ke Yan, CFA, FRM

Northbound Flows (Jul 14th): Moutai, CATL, Wuliangye, Yangtze Power, China Telecom, Haitian

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Moutai, CATL, Wuliangye, China Yangtze Power, China...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Haitian Flavouring (603288 CH): Weakening Moat With Further Derating Likely

​Foshan Haitian Flavouring & Food, the largest condiment player in China, likes sees further derating in valuation multiple due to a weakening moat.

Steve

Northbound Flows Monthly (July): $7.3bn Inflows

We analyzed the Shanghai/Shenzhen Connect Scheme for July and highlight flows for Moutai, CATL, BYD, Wuliangye, East Money, Haitian Flavoring,...

Ke Yan, CFA, FRM

Northbound Flows (Jul 28th): $5.2bn Inflows

We analyzed the Shanghai/Shenzhen Connect Scheme for last week and highlight flows for Moutai, CATL, East Money Information, Wuliangye, Ping An...

Ke Yan, CFA, FRM

China A-Share Consumer Staples: The Most Challenging Time Is Behind

Negative consumer appetite has affected the performance of Chinese A-share consumer staples. With no significant earnings downgrades for most, the...

Osbert Tang, CFA

Northbound Flows (Jul 14th): Moutai, CATL, Wuliangye, Yangtze Power, China Telecom, Haitian

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Moutai, CATL, Wuliangye, China Yangtze Power, China...

Ke Yan, CFA, FRM

Foshan Haitian Flavouring & Food, the largest condiment player in China, likes sees further derating in valuation multiple due to a weakening moat.