Huafu Securities: Haitian Flavouring & Food Co.'s profit continues to increase, maintains a "buy" rating.

Huafu Securities research report pointed out that Haitian Flavor Industry's revenue is steadily growing and profit is continuously increasing. The company achieved revenue of 9.029 billion yuan in the first quarter of 2026, an increase of 8.57% year-on-year; net profit attributable to shareholders was 2.444 billion yuan, an increase of 10.97% year-on-year. The gross profit margin continues to optimize, financial expenses are increasing, and profitability is steadily improving. Looking ahead, the company has a leading moat in terms of scale and efficiency, which is expected to drive a continuous and steady increase in market share. In addition, the current demand side may continue to improve, and as a leading company in the industry with a comprehensive product matrix and channel layout, the company is likely to achieve sustained growth in performance. As a leading company in the Chinese seasoning industry, the company's stable growth performance reflects its competitive advantages in brand, product, and channel. Considering the company's performance in the first quarter of 2026, the previous profit forecast is maintained. It is estimated that the net profit attributable to shareholders in 2026-2028 will be 7.9 billion/8.793 billion/9.674 billion yuan, an increase of 12%/11%/10% year-on-year. The current market value corresponds to PE ratios of 30/27/24 times for 2026-2028, maintaining a "buy" rating.