CMB International: Raises target price of NONGFU SPRING (09633) to 60.88 Hong Kong dollars, maintains "buy" rating.

CMB International released a research report stating that NONGFU SPRING (09633) is expected to achieve a 22.5% year-on-year growth in revenue to 52.6 billion yuan in the fiscal year 2025, exceeding market expectations by 4%; Net profit is expected to increase by 30.9% to 15.9 billion yuan, exceeding market expectations by 6%. The performance is benefited from the recovery of the bottled water business, better than expected performance in tea drinks and fruit juice business, as well as a significant decrease in sales and administrative expenses after the Olympic year. NONGFU SPRING maintains a double-digit revenue growth target for the fiscal year 2026, with the bank forecasting a compound annual growth rate of approximately 11% in revenue and profitability for the years 2026-2028. The bank maintains a "buy" rating and raises the target price by 5% to 60.88 Hong Kong dollars.