Lyon: Maintained Foshan Haitian Flavouring and Food (03288) "outperform" rating target price raised to HK$40.

Lyon released a research report stating that it maintains a "outperform" rating on Foshan Haitian Flavouring and Food (03288), as its competitors are facing budget constraints. It is expected that the company's planned product portfolio will drive a three-year compound annual growth rate of 6.2% from 2026 to 2028. The bank has raised its net profit forecast for this year and next year by 3% to 4%, and its target price has been increased from HK$39 to HK$40. The report stated that Foshan Haitian Flavouring and Food's revenue growth in the first 9 months of last year was 6%, accelerating to 11% in the fourth quarter, with net profit increasing by 12% year-on-year to 1.7 billion yuan. The group has completed the cleaning up of its distribution network and used its scale advantage to expand market share. The recovery of restaurant demand in the fourth quarter of last year also contributed to this growth.