HK Stock Market Move | NONGFU SPRING (09633) rose over 4% in early trading. The company will release a new high-quality and affordable mineral water. Analysts believe that the increase in market share may exceed expectations.

NONGFU SPRING (09633) rose more than 4% in early trading, up 3.21% to HK$33.8 at the time of writing, with a trading volume of HK$1.51 billion. On the news front, on December 20, NONGFU SPRING's Tmall flagship store, JD self-operated flagship store, and others have launched new mineral water products with a limited-time promotional price of 15 bottles for 18 yuan. Guosheng Securities pointed out that following the launch of bottled water in green packaging, NONGFU SPRING has once again introduced mineral water under the brand "Changbai Mountain Tourism Spring," with a promotional price of 1.2 yuan per 380ml bottle. With fierce competition in the drinking water market expected in 2024, NONGFU SPRING has regained some market share with its green bottled purified water. We expect strong competition to continue in 2025, further increasing market share for the industry leader. CMSC previously pointed out that the company faced external crises in its operations, but responded actively by offering discounts on green bottled water through channels. Market share began to rebound in the second half of the year, with expectations of exceeding market expectations for the next 1-2 years. In terms of profit margins, it is calculated that risks in 24H2 have been largely released, and it is expected that profit margins in 2025 will outperform market expectations. The company is strategically expanding into multiple potential categories, with short-term growth continuing for East Tree Leaves and opportunities in the medium to long term for juices, coffee, and more. Short-term fluctuations may have affected the company's valuation, but a strong industry leader's adjustment speed and effectiveness often exceed market expectations, with the potential for both valuation and performance to double in 2025.