标题：Haitian Flavouring and FoodTargets met; L-T value lies in steady operation
发布日期：2016-03-11 7:49:11
内容： 2015 revenue/profit targets met In 2015, revenue/net profit +15.0%/+20.1% YoY,meeting both the company’s equity incentive target aswell as the financial budget target it set at start-2015;4Q15 revenue/net profit +24.9%/+19.9% YoY. It proposed aRmb6 cash dividend (tax incl.) per 10 shares; its 2016revenue/net profit targets are +15%/+20% YoY. 4Q15’s strong revenue growth reflects company’sdetermination to meet its 2015 target (in full on page 3). Trends to watch Growth logic for the condiment sector and Haitianremain unchanged. Despite the sector slowdown, thecondiment sector still enjoys leading growth compared withother niche segments. Moreover, Haitian continued to seekorganic growth and M&As. Amid macroeconomic sluggishness,many leaders of consumer goods segments saw serious volatilityin earnings; however, Haitian maintained steady growth with aclear L-T growth logic. We believe Haitian’s L-T value lies in itssteady operation. With solid leadership, visible channeladvantages, excellent management team and huge potential forcategory expansion, Haitian is a rare A-share target, thusjustifying its valuation premium. Earnings forecast We lift 2016e revenue/net profit forecasts by2.5%/0.5% to Rmb12.944bn/2.982bn, or EPS ofRmb1.10; and give 2017e revenue/net profit forecasts ofRmb14.807bn/3.483bn, or EPS of Rmb1.29. Valuation and recommendation Keep TP of Rmb34.27; maintain BUY. Risks Intensified competition amid sector slowdown; rising rawmaterial costs; food safety issues.
发布日期：2016-03-11 7:49:11
内容： 2015 revenue/profit targets met In 2015, revenue/net profit +15.0%/+20.1% YoY,meeting both the company’s equity incentive target aswell as the financial budget target it set at start-2015;4Q15 revenue/net profit +24.9%/+19.9% YoY. It proposed aRmb6 cash dividend (tax incl.) per 10 shares; its 2016revenue/net profit targets are +15%/+20% YoY. 4Q15’s strong revenue growth reflects company’sdetermination to meet its 2015 target (in full on page 3). Trends to watch Growth logic for the condiment sector and Haitianremain unchanged. Despite the sector slowdown, thecondiment sector still enjoys leading growth compared withother niche segments. Moreover, Haitian continued to seekorganic growth and M&As. Amid macroeconomic sluggishness,many leaders of consumer goods segments saw serious volatilityin earnings; however, Haitian maintained steady growth with aclear L-T growth logic. We believe Haitian’s L-T value lies in itssteady operation. With solid leadership, visible channeladvantages, excellent management team and huge potential forcategory expansion, Haitian is a rare A-share target, thusjustifying its valuation premium. Earnings forecast We lift 2016e revenue/net profit forecasts by2.5%/0.5% to Rmb12.944bn/2.982bn, or EPS ofRmb1.10; and give 2017e revenue/net profit forecasts ofRmb14.807bn/3.483bn, or EPS of Rmb1.29. Valuation and recommendation Keep TP of Rmb34.27; maintain BUY. Risks Intensified competition amid sector slowdown; rising rawmaterial costs; food safety issues.
