HK Stock Market Move | CR BEVERAGE (02460) falls more than 4% to hit a new low, down nearly 30% from the IPO price. The market is concerned about the short-term intensification of competition in the packaged water industry.

CR BEVERAGE (02460) fell more than 4% in the morning session, reaching a new low of 10.52 Hong Kong dollars, which is nearly 30% lower than its IPO price of 14.5 Hong Kong dollars. As of the deadline, it fell 2.91% to 10.68 Hong Kong dollars, with a turnover of 39.8842 million Hong Kong dollars. On the news front, on December 20th, NONGFU SPRING's Tmall flagship store, JD flagship store, and others launched new mineral water products with a limited time offer of 18 yuan for 15 bottles. Cinda pointed out that the market is concerned about changes in the packaging drinking water industry by 2025. The bank believes that in the context of strong demand for consumer cost-effective products, the packaging water industry is expected to enter a stage of intense competition, and NONGFU SPRING, with its scale advantage and strategic determination, is expected to further capture market share. Huatai, on the other hand, pointed out that there is some concern in the market about the short-term intensification of competition in the packaging water industry, but they believe that CR BEVERAGE has a strong consumer mindshare due to its omni-channel layout and multi-dimensional marketing. They also have a solid leading position in the purified water track, and in their forward-looking layout, they focus on large-scale products to avoid the more intense competition in the smaller packaging water segment track. Additionally, in the fierce competition, some small and medium-sized water companies may be eliminated in the current round of price competition, but the industry's expansion and concentration of leading companies are still the main trends in the medium to long term.