Analysts at Bank of America Securities have issued a research report initiating coverage on Haitian Flav (03288) H-shares with a 'Buy' rating, setting a target price of HK$37.

The report highlights that Haitian Flav is the market leader in China's soy sauce and oyster sauce segments. The firm believes the company possesses scarce value, as it has demonstrated resilient growth despite a challenging industry backdrop, achieving sales growth for nine consecutive quarters starting from the first quarter of 2024.

Furthermore, the company's market share for its core products continues to expand. Based on this outlook, the analysts have raised their 2027 profit forecast for the company by 2%, anticipating that the results of its business transformation initiatives will become evident.

The report acknowledges that cost pressures remain a near-term concern. However, it notes that the H-shares are currently trading at around 19 times forecasted earnings for this year, a valuation which the analysts believe already reflects these market concerns.