UBS has published a research report initiating coverage on HAITIAN FLAV (03288) H-shares with a "Buy" rating and a target price of HK$40, representing projected price-to-earnings ratios of 31x and 29x for this year and next year respectively.

The investment bank believes HAITIAN FLAV is the most competitive and high-quality enterprise in the seasoning industry, possessing the potential to achieve long-term stable growth. During 2009-2019, benefiting from rapid growth in the catering industry and consumption upgrades, HAITIAN FLAV achieved robust compound annual growth rates of 16% for revenue and 22% for net profit. However, growth momentum decelerated to 6% and 3% respectively during the 2019-2024 period.

The report indicates that the company has gradually emerged from its trough since 2024 and has demonstrated its resilience during industry volatility, consolidating its market-leading position through continuous product optimization and channel refinement. UBS expects the company to stabilize the market landscape and achieve compound annual growth rates of 7% for revenue and 10% for net profit during 2024-2027.