# Foshan Haitian Flavouring and Food (603288.SHG)

Canonical: https://gigainvestors.com/s/603288.SHG

Analysis as of: 2026-10-16T07:34:19.934Z. Financial observations: FY2009–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 34.38 per share; close as of 2026-10-15.

Estimated value: low CNY 20.04 per share, central CNY 25.38 per share, high CNY 28.88 per share. Buy at or below the central value CNY 25.38 per share. Valuation as of 2026-10-16T07:34:19.934Z; scenarios are not confidence intervals.

Expected annual return: 7.9% at the stated quote. About 7.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.07×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.27×

- FY2017: 0.29×

- FY2018: 0.31×

- FY2019: 0.32×

- FY2020: 0.34×

- FY2021: 0.31×

- FY2022: 0.29×

- FY2023: 0.27×

- FY2024: 0.28×

- FY2025: 0.27×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 69.0%

- ROIC, second-lowest year: 31.8%

- Typical minus recent gross margin: 3.8 pp

- Typical gross margin (annual median): 40.8%

- Recent gross margin (lower of latest and 3-year median): 37.0%

- Years with nonpositive capital: 3

- Capital spending / revenue: 4.3%

- ROIC including acquisitions, ten-year median: 95.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 57.8%

- FY2017: 57.1%

- FY2018: 99.5%

- FY2019: 32.3%

- FY2020: 31.8%

- FY2021: 28.3%

- FY2022: >100%

- FY2023: >100%

- FY2024: >100%

- FY2025: 80.2%

### economics: pass

- Owner earnings / net income, 5-yr: 0.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 30B

- Net income, five-year total: CNY 32B

- Return on incremental invested capital: 124.4%

- Working capital / revenue, annual change: -1.0 pp

- Working capital / revenue, change between three-year averages: -6.1 pp

- Working capital / revenue, final three-year average: 4.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.91×

- FY2023: 0.82×

- FY2024: 0.97×

- FY2025: 0.99×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 57.8% vs 450.7%

- Per-share earnings: 0.68 to 1.14 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.3%

- Ordinary dilution, 5-year annual growth: 6.6%

- Market cap gain: CNY 158B

- Cumulative retained earnings: CNY 19B

- Diluted shares, 10-year annual growth: 3.3%

- Diluted shares, 5-year annual growth: 6.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 6.7%

- Per-share value change: CNY 0.46

- Per-share value, starting three-year median: CNY 0.68

- Per-share value, ending three-year median: CNY 1.14

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.1%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 947M

- Cumulative net income, 10 years: CNY 54B

- ROIC, first three-year median: 57.8%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.68

- FY2017: CNY 0.81

- FY2018: CNY 1.03

- FY2019: CNY 1.25

- FY2020: CNY 1.51

- FY2021: CNY 1.57

- FY2022: CNY 1.11

- FY2023: CNY 1.01

- FY2024: CNY 1.14

- FY2025: CNY 1.21

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -2.8%

- Receivables to sales index (DSRI): 2.10×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.21×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -9.1%

- FY2017: -7.3%

- FY2018: -8.1%

- FY2019: -4.9%

- FY2020: -1.9%

- FY2021: 1.0%

- FY2022: 7.0%

- FY2023: -4.5%

- FY2024: -1.2%

- FY2025: -2.8%

## Holders

## Price story

Down 61% since Oct 2021 · sales +6.7%

Story as of 2026-10-16T10:00:00.119Z; price observation 2026-10-15.

Price needs cash profits to grow 9.8% a year for ten years

### Sales · FY2024–2025

sales +6.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 12B 

- FY2017: CNY 15B 

- FY2018: CNY 17B 

- FY2019: CNY 20B 

- FY2020: CNY 23B 

- FY2021: CNY 25B 

- FY2022: CNY 26B 

- FY2023: CNY 25B 

- FY2024: CNY 27B 

- FY2025: CNY 29B 

### Gross margin · FY2025

gross margin 39.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 43.9% 

- FY2017: 45.7% 

- FY2018: 46.5% 

- FY2019: 45.4% 

- FY2020: 42.2% 

- FY2021: 38.7% 

- FY2022: 35.7% 

- FY2023: 34.7% 

- FY2024: 37.0% 

- FY2025: 39.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in packaged foods; annual sales are CNY 28.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2025: revenue 28709909883; grossProfit 11323214154; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603288.SHG: Foshan Haitian Flavouring and Food Company Ltd. engages in the production and sale of condiments, food and agricultural products, and beverages in China. The company offers soybean paste, soy sauce, flavoured sauce, oyster sauce, vinegar, cooking wine, and compound seasonings. It also engages in packaging materials and glass bottles packaging and catering services. The company exports its products worldwide. The company was founded in 1955 and is headquartered in Foshan, China. Foshan Haitian Flavouring and Food Company Ltd. operates as a subsidiary of Guangdong Haitian Group Co., Ltd.

### Why customers stay

Margins ranged from 34.7% to 39.4% during 2023–25; it earns 69% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2023: grossProfit / revenue = 34.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2024: grossProfit / revenue = 37%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2025: grossProfit / revenue = 39.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); 10-year return on capital observations [[2016,0.5784029391906941],[2017,0.5713806814206659],[2018,0.9946963713776062],[2019,0.3227483774544786],[2020,0.31795239842359924],[2021,0.28289860407306605],[2022,2.8702919898625865],[2023,4.507161510874898],[2024,4.5184945059710016],[2025,0.8020391907999653]]; median 0.6902210649953298. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 5.9% of cash earnings on expansion; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2016: growth capex 406842250.33000004; upkeep 381224590; owner earnings 2843133968. Growth capex / owner earnings = 0.14309640520252828.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2017: growth capex 0; upkeep 262027920.76; owner earnings 3711357197.24. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2018: growth capex 0; upkeep 223924954.49; owner earnings 4583853579.51. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2019: growth capex 104055405.23000002; upkeep 478576681; owner earnings 5353185029. Growth capex / owner earnings = 0.019438036358970776.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2020: growth capex 332568007.4; upkeep 574427120; owner earnings 6402859991. Growth capex / owner earnings = 0.051940540300344666.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2021: growth capex 308049282.27; upkeep 722686837; owner earnings 6659943776.24. Growth capex / owner earnings = 0.04625403646334011.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2022: growth capex 123322408.28902626; upkeep 1394578254.3409739; owner earnings 5610955413.001026. Growth capex / owner earnings = 0.021978860855546723.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2023: growth capex 0; upkeep 1924147447; owner earnings 4598189649.936. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2024: growth capex 504788405.16093016; upkeep 1070911815.8390698; owner earnings 6143284407.09893. Growth capex / owner earnings = 0.08216914140872546.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); FY2025: growth capex 410397636.5547824; upkeep 873203849.4452176; owner earnings 6989660733.130782. Growth capex / owner earnings = 0.058714958025002546.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); Incremental return on capital 1.2443054102806144, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); Dividend observations: [[2016,1623747600],[2017,1839366476],[2018,2296620777.65],[2019,2647449682.5],[2020,2921184860.63],[2021,324044321],[2022,3201557889],[2023,3253402616],[2024,3689795267],[2025,6312937387.82]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 76.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603288.SHG SharesStats.PercentInsiders = 76.424 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9.8% yearly over ten years; actual growth was 7.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.934Z); Ten-year compound average after fade. Initial solved rate 0.1278576857272974. Price 34.38; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.5949622141279703 → FY2025 1.1967048806374954. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-11: CNY 15.30 per share

- 2016-12: CNY 14.03 per share

- 2017-01: CNY 14.93 per share

- 2017-02: CNY 14.77 per share

- 2017-03: CNY 16.65 per share

- 2017-04: CNY 17.62 per share

- 2017-05: CNY 18.62 per share

- 2017-06: CNY 19.50 per share

- 2017-07: CNY 18.53 per share

- 2017-08: CNY 19.41 per share

- 2017-09: CNY 22.67 per share

- 2017-10: CNY 24.52 per share

- 2017-11: CNY 23.39 per share

- 2017-12: CNY 25.73 per share

- 2018-01: CNY 26.96 per share

- 2018-02: CNY 26.45 per share

- 2018-03: CNY 27.15 per share

- 2018-04: CNY 29.64 per share

- 2018-05: CNY 35.84 per share

- 2018-06: CNY 35.22 per share

- 2018-07: CNY 33.85 per share

- 2018-08: CNY 32.76 per share

- 2018-09: CNY 37.88 per share

- 2018-10: CNY 30.88 per share

- 2018-11: CNY 30.31 per share

- 2018-12: CNY 32.90 per share

- 2019-01: CNY 34.58 per share

- 2019-02: CNY 36.67 per share

- 2019-03: CNY 41.47 per share

- 2019-04: CNY 42.70 per share

- 2019-05: CNY 47.92 per share

- 2019-06: CNY 50.22 per share

- 2019-07: CNY 47.78 per share

- 2019-08: CNY 54.84 per share

- 2019-09: CNY 52.57 per share

- 2019-10: CNY 53.41 per share

- 2019-11: CNY 51.17 per share

- 2019-12: CNY 51.42 per share

- 2020-01: CNY 51.28 per share

- 2020-02: CNY 47.63 per share

- 2020-03: CNY 59.86 per share

- 2020-04: CNY 58.79 per share

- 2020-05: CNY 65.94 per share

- 2020-06: CNY 71.40 per share

- 2020-07: CNY 86.13 per share

- 2020-08: CNY 105.14 per share

- 2020-09: CNY 93.03 per share

- 2020-10: CNY 91.94 per share

- 2020-11: CNY 91.37 per share

- 2020-12: CNY 115.09 per share

- 2021-01: CNY 113.15 per share

- 2021-02: CNY 99.12 per share

- 2021-03: CNY 91.71 per share

- 2021-04: CNY 97.28 per share

- 2021-05: CNY 103.98 per share

- 2021-06: CNY 97.69 per share

- 2021-07: CNY 86.85 per share

- 2021-08: CNY 71.95 per share

- 2021-09: CNY 83.33 per share

- 2021-10: CNY 88.65 per share

- 2021-11: CNY 85.08 per share

- 2021-12: CNY 79.63 per share

- 2022-01: CNY 73.08 per share

- 2022-02: CNY 75.00 per share

- 2022-03: CNY 66.23 per share

- 2022-04: CNY 67.93 per share

- 2022-05: CNY 63.87 per share

- 2022-06: CNY 75.30 per share

- 2022-07: CNY 68.89 per share

- 2022-08: CNY 67.13 per share

- 2022-09: CNY 69.02 per share

- 2022-10: CNY 49.73 per share

- 2022-11: CNY 58.63 per share

- 2022-12: CNY 66.33 per share

- 2023-01: CNY 66.12 per share

- 2023-02: CNY 68.48 per share

- 2023-03: CNY 63.78 per share

- 2023-04: CNY 58.83 per share

- 2023-05: CNY 50.42 per share

- 2023-06: CNY 46.85 per share

- 2023-07: CNY 46.30 per share

- 2023-08: CNY 39.10 per share

- 2023-09: CNY 37.99 per share

- 2023-10: CNY 37.65 per share

- 2023-11: CNY 38.11 per share

- 2023-12: CNY 37.95 per share

- 2024-01: CNY 33.93 per share

- 2024-02: CNY 40.66 per share

- 2024-03: CNY 39.41 per share

- 2024-04: CNY 39.26 per share

- 2024-05: CNY 35.80 per share

- 2024-06: CNY 34.47 per share

- 2024-07: CNY 35.14 per share

- 2024-08: CNY 37.00 per share

- 2024-09: CNY 48.17 per share

- 2024-10: CNY 43.77 per share

- 2024-11: CNY 45.14 per share

- 2024-12: CNY 45.90 per share

- 2025-01: CNY 40.99 per share

- 2025-02: CNY 41.11 per share

- 2025-03: CNY 40.58 per share

- 2025-04: CNY 41.92 per share

- 2025-05: CNY 44.42 per share

- 2025-06: CNY 38.91 per share

- 2025-07: CNY 38.35 per share

- 2025-08: CNY 41.44 per share

- 2025-09: CNY 38.96 per share

- 2025-10: CNY 38.11 per share

- 2025-11: CNY 36.96 per share

- 2025-12: CNY 37.02 per share

- 2026-01: CNY 35.30 per share

- 2026-02: CNY 35.96 per share

- 2026-03: CNY 41.00 per share

- 2026-04: CNY 38.64 per share

- 2026-05: CNY 35.92 per share

- 2026-06: CNY 33.16 per share

- 2026-07: CNY 38.44 per share

- 2026-08: CNY 33.63 per share

- 2026-09: CNY 33.17 per share

- 2026-10: CNY 34.55 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 7.82 per share, central CNY 8.74 per share, high CNY 9.96 per share

- FY2017: low CNY 9.34 per share, central CNY 10.46 per share, high CNY 11.95 per share

- FY2018: low CNY 12.17 per share, central CNY 13.55 per share, high CNY 15.39 per share

- FY2019: low CNY 21.20 per share, central CNY 29.01 per share, high CNY 33.37 per share

- FY2020: low CNY 26.05 per share, central CNY 35.68 per share, high CNY 41.04 per share

- FY2021: low CNY 27.31 per share, central CNY 36.53 per share, high CNY 41.89 per share

- FY2022: low CNY 21.13 per share, central CNY 28.35 per share, high CNY 32.55 per share

- FY2023: low CNY 20.72 per share, central CNY 27.27 per share, high CNY 31.17 per share

- FY2024: low CNY 20.15 per share, central CNY 26.28 per share, high CNY 29.94 per share

- FY2025: low CNY 20.34 per share, central CNY 25.49 per share, high CNY 28.87 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.