Analyst

Steve

Equity Bottom-Up

Foshan Haitian Flavouring & Food / Equity Bottom-Up

Foshan Haitian Flavouring & Food (603288 CH)

<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