Lates News

Citibank issued a research report stating that Nongfu Spring's performance exceeded expectations and the visibility of growth in the second half of the year is high. Sales and net profit in the first half of the year increased by 16% and 22% year-on-year, reaching the upper limit of market estimates. Core operating profit increased by 31% year-on-year, surpassing expectations mainly due to the faster-than-expected pace of gross margin recovery and well-controlled sales and administrative expenses. The bank expects strong growth in the group's packaged water sales to continue in the second half of the year, with improved product mix reducing price fluctuations and healthy channel inventory levels. Nongfu Spring is expected to solidify its leading position in the unsweetened tea market and explore additional growth opportunities through promotions and launching new flavor products. Bank of America Securities raised Nongfu Spring's earnings per share forecast for the current and next two years by 2%, raising the target price from 50 Hong Kong dollars to 52 Hong Kong dollars and reiterated a "buy" rating as the top pick in the beverage industry.