Haitong International: Nongfu Spring achieved high-quality performance growth last year, and the target price has been raised to 59.8 Hong Kong dollars.

Haitong International has published a research report stating that Nongfu Spring has shown resilience in competition and is expected to achieve high-quality performance growth by 2025 through cost advantages and expense efficiency optimization, driving profitability to new highs with revenue surpassing 50 billion RMB for the first time. Management has guided that revenue in 2026 will achieve double-digit growth, with a short-term goal of returning to and exceeding the scale of packaged drinking water in 2023. Overseas channel expansion has already begun, with core products launched in Hong Kong and Singapore, laying the foundation for global growth. The target price has been raised from HK$55.9 to HK$59.8, maintaining an "outperform" rating, corresponding to a forecasted P/E ratio of 35 times in 2026.