BOCI Research: Maintains "Buy" rating on NONGFU SPRING (09633) with a target price raised to 39.1 Hong Kong dollars.

Bank of China International released a research report stating that NONGFU SPRING (09633) valuation premium still has support, and bottled water sales are expected to rebound by 2025. The bank maintains a "buy" rating on NONGFU SPRING, with a target price raised to 39.1 Hong Kong dollars. The bank stated that drawing on the experience of the Japanese ready-to-drink soft drink market, the sugar-free ready-to-drink tea experienced rapid development and penetration in the 1990s. This sector has also experienced explosive growth in the mainland China in the past three years, and is expected to maintain double-digit sales growth from 2025 to 2026. As for the bottled water business, price promotions and competition have eased, and NONGFU SPRING's pricing strategy is becoming more rational. Looking ahead to 2025, it is believed that NONGFU SPRING will continue to prioritize market share consolidation, with its bottled water sales expected to increase by 7% year-on-year.