HK Stock Market Move | Nongfu Spring (09633) is now up more than 4%. The market may maintain strong competition. The company's market share of packaged water may exceed expectations.

NONGFU SPRING (09633) is up more than 4% at present, rising by 4.04% to HK$34.8 as of press time, with a turnover of HK$1.23 billion. On the news front, on December 20th, NONGFU SPRING's flagship stores on Tmall and JD.com have launched new mineral water products, with a limited-time promotional price of 18 yuan for 15 bottles. Guosheng Securities pointed out that after the success of their green bottled water, NONGFU SPRING has once again introduced their mineral water brand "Changbai Mountain Tourism Spring", priced at 1.2 yuan/bottle for 380ml. In the fiercely competitive drinking water market of 2024, NONGFU SPRING has regained some market share with their green bottled purified water, and we expect the strong competition to continue into 2025 as they further increase their market share as a leader. CMSC also indicated that the company's launch of green bottled water, as a strategic product to capture market share, is essential. For the on-the-go small bottled water market, sales mainly rely on channel promotion, and the green bottled water is giving significant benefits to channels, which has resulted in positive intentions from distributors and retailers to stock up in the second half of the year. Considering the difficulties for other brands to imitate, NONGFU SPRING's market share is expected to exceed expectations, with the company not only aiming to recover their market share before the public relations event, but also to further dominate the market.