HK Stock Market Move | Nongfu Spring (09633) surged more than 5% to a three and a half year high. Institutions expect the company's first half revenue to grow higher than market expectations.

NONGFU SPRING (09633) rose by more than 5% again, hitting a high of 47.35 Hong Kong dollars, reaching a new high in three and a half years, with a total market value exceeding 500 billion Hong Kong dollars. As of the time of publication, it rose by 5.12% to 47.2 Hong Kong dollars, with a turnover of 2.25 billion Hong Kong dollars. On the news front, there will be new developments in the Wahaha-Zong's multi-billion-dollar property dispute case on August 1. Information on the Hong Kong High Court website shows that the relevant case will be heard in the Hong Kong High Court on August 1. A research report released by Credit Suisse stated that the Wahaha property dispute case may affect the group's product sales and market share, while competitors NONGFU SPRING and CR BEVERAGE are expected to benefit from it, accelerating their market share growth. Credit Suisse also released a research report estimating that NONGFU SPRING's revenue in the first half of 2025 is expected to increase by 18% year-on-year, and profit to increase by 20% year-on-year. The revenue growth is higher than market expectations, mainly due to better-than-expected performance of tea drinks and fruit juices, while profit growth is basically in line with expectations. The bank believes that considering the lower base in the second half of 2025, potential consumer return due to public opinion, and strong momentum in terminal sales, the company's revenue growth in the second half of the year is expected to improve. The packaged water business still lags behind that of 2023, but the trend of increasing market share month by month is clear, and the bank believes that the impact of last year's public opinion may gradually fade away.