Soft Drinks and Non-alcoholic Beverages

NONGFU SPRING

Dongpeng Beverage

Financial Analysis

09980

09633

605499

'Second growth curve' electrolyte water growth decelerated sharply

EASTROC

EASTROC BEVERAGE

Dongpeng Beverage: Under fire on all fronts — can the energy-drink leader rebound?

Nongfu Spring

Conference Minutes

Below is Dolphin Research's Trans of $NONGFU SPRING(09633.HK) FY2025 earnings call. For the earnings analysis, please see 'Nongfu Spring: From defense to offense, Water Moutai on a tear!': I. Core highlights recap:1. Shareholder returns: The BOD proposes a final cash DPS of RMB 0.99 for FY2025, totaling approx. RMB 11.134 bn. Payout ratio stays around 70%, with the dividend up 30.9% YoY.2. Guidance: For 2026, the company targets double-digit revenue growth. This is a revenue target. ...

Nongfu Spring (Trans): No price hikes planned; still targeting double-digit growth---

Packaged water OPM hits record high

Nongfu Spring: From defense to offense, the 'Water Maotai' powers higher!

---

The following are the minutes of the Nongfu Spring Q2 2025 earnings call organized by Dolphin Research. For an interpretation of the financial report, please refer to &#34;Nongfu Spring: Green Bottle Exits, Red Bottle Takes Over, 'Water Mao' Makes a Comeback!&#34;

Nongfu Spring (Minutes): first steps finally made towards global markets

On the afternoon of August 26th, Beijing time, Nongfu Spring (9633.HK) released its H1 2025 performance report. As the public opinion impact gradually subsided in the first half of the year, Nongfu increased the promotion of its red bottle water and reduced subsidies for its green bottle water, driving the overall performance of the company to fully recover, exceeding market expectations. It is a good performance report.

Nongfu Spring: Green bottle exits, red bottle takes the stage, the 'Water Moutai' makes a comeback!

Nongfu Spring 25H1 Quick Interpretation: As the impact of public opinion gradually faded in the first half of the year, Nongfu increased the promotion of red bottled water and reduced subsidies for green bottled water, leading to a comprehensive recovery in the company's overall performance, which is a very good result. 1. Bottled Water Business: With the weakening of public opinion impact, the 25H1 bottled water business achieved revenue of 9.44 billion yuan, a year-on-year increase of 10.7%. After two consecutive financial reports of decline, the bottled water business has resumed positive growth. Additionally, with the increase in the proportion of red bottled water, the operating profit margin of the bottled water business has risen back to 35%, basically returning to the level before the impact of public opinion. 2. Tea Beverage Business: Tea beverages achieved revenue of 10.09 billion yuan, a year-on-year increase of 20%. Dolphin Research speculates that the core reason is the &#34;One Yuan Enjoyment&#34; campaign launched by the company in April for the sugar-free tea flagship product, Oriental Leaves, which effectively increased consumer repurchase rates and drove high growth in sugar-free tea. Moreover, with the release of operating leverage, the more impressive aspect is that the operating profit margin of the tea beverage business increased by 4 percentage points to 48%, setting a historical high. 3. Functional Drinks &amp; Juice Business: As a relatively weak segment for Nongfu, the functional drinks and juice business benefited from the rapid distribution of Electrolyte Water Power Emperor and the new 17.5° NFC Orange Juice, exceeding market expectations, with operating profit margins reaching new highs. 4. Significant Decline in Sales Expense Ratio: Due to the company's significant reduction in subsidies for green bottled water in the first half of the year, combined with more precise expense allocation, the sales expense ratio fell by 2.8 percentage points to 19.6%, while the management expense ratio remained stable, ultimately achieving a net profit margin of 22.1%, exceeding market expectations. $NONGFU SPRING(09633.HK)

Today’s Key News Recap

83690

MPNGY

03690

688688

HMTD

0506｜Dolphin Research key focus: 🐬 Macro/Industry 1. With the end of the Labor Day holiday, the national consumer market maintained its recovery, with sales growth rates of key retail and catering enterprises rebounding compared to the Spring Festival. According to the Ministry of Commerce's big data monitoring, sales of key retail and catering enterprises during the holiday increased by 6.3% year-on-year, higher than the 4.5% and 4.1% during the 2024 National Day holiday and 2025 Spring Festival holiday. Today, the catering and cultural tourism sectors performed well, with Dolphin Research's focus stocks like Nongfu Spring and Meituan rising. 🐬 Stocks 1. Ant Group during the holiday...

MEITUAN-WR

Meituan

MEITUAN

ANT GROUP

Meituan HK SDR 5to1

May Day holiday consumption heats up; Ant plans to spin off overseas business for Hong Kong listing | Today's important news recap

The following is the Minutes of the conference call for Nongfu Spring's 2024 second half financial report organized by Dolphin Research. For the financial report interpretation, please refer to &#34;Nongfu Spring: Has the Nature Mover Stopped Moving?&#34; 1. Core Financial Information Review 1. Sales and Distribution Expenses: The marketing expense ratio for 2024 decreased from 21.8% in the same period of 2023 to 21.4%. Among them, although advertising and promotional expenses increased, logistics costs decreased due to the impact of the product sales volume structure. 2. Administrative Expenses: In 2024, it amounted to RMB 1.962 billion, accounting for 4.6% of total revenue...

Nongfu Spring (Minutes): Profits are high, margins are not essential

On the afternoon of March 25th, Beijing time, Nongfu Spring (9633.HK) released its 2024 H2 performance, with all core businesses falling short of market expectations. The specific points are as follows: 1. The decline in bottled water has widened: The 24H2 bottled water business achieved revenue of 7.42 billion yuan, a year-on-year decline of 24%, continuing to slow down compared to the first half of the year (-18%), significantly below market expectations (10.09 billion yuan). The market originally expected that in the second half of the year, as the impact of public opinion weakened, the expansion of green bottle water supply, and the bottled water business could significantly recover...

Nongfu Spring: "The carrier of nature" can not carry?

$NONGFU SPRING(09633.HK) 24H2 performance quick interpretation: The company's performance in 24H2 significantly missed expectations. The market originally expected that in the second half of the year, with the weakening of public opinion, the expansion of green bottled water supply, and the packaging water business could significantly recover, but the actual situation is that the packaging water business missed market expectations significantly due to weakened subsidies and intensified competition, while the tea beverage business, which was in high growth momentum, also saw a decline in growth rate compared to the same period last year due to a high base, slightly missing market expectations.1. Packaging water business: The packaging water business in 24H2 declined by 24% year-on-year, continuing to slow down compared to the first half of the year (-18%). Dolphin Research believes the main reason is that the company increased the supply of green bottled water in the second half of the year. Although green bottled water helped boost market share, its factory price is lower than that of red bottled water, which lowered the overall revenue of packaging water.2. Tea beverage business: The tea beverage business grew by 13% year-on-year in 24H2, partly due to the high base from the same period last year, and partly due to intensified competition in sugar-free tea, with many new entrants, causing the growth rate of the tea beverage business to decline compared to the over 50% high growth rate in the previous two years.3. Stable expense investment: Due to the low price of green bottled water, the required channel promotion expenses are relatively low, so the overall control of expenses exceeded market expectations. Although the company controlled expenses relatively less, the core operating profit in 24H2 still declined by 11% year-on-year, falling short of expectations.4. Dolphin Research believes that Nongfu Spring in the second half of the year is basically in the most difficult stage. In 2025, as the supply of green bottles narrows and subsidies weaken the company's profitability is expected to improve marginally.

Nongfushanquan Almost Does Not Involve Canned Beverages

Citi Raises Target Price for Nongfu Spring to HKD 59.2

China's Tea Beverage Industry Shows Health-Oriented Dominance and Rapid Growth in Unsweetened Tea

Competitive Intensifies in Electrolyte Water Market, Brands Launch New Products

Nongfushanquan Adjusts Strategy in 2025 to Combat Price War and Rebounds Revenue and Profit

Nongfu Spring Revives 'Red 尖叫' Through Limited-Time Voting

Nongfu Spring Shows Good Growth Potential with Innovation and Optimization

Nongfu Spring Releases 2025 Sustainability Report

Nongfu Spring Maintains Dealer Price Order to Ensure Company Health

Nongfu Spring's Haikou Water Source Factory Officially Starts Production

Huatai International Raises Target Price for Nongfu Spring to HKD 59.8

CMB International Raises Target Price for Nongfu Spring to HK$60.88

Nongfu Spring's Financial Report: Tea Drinks Become Largest Business Segment

Jefferies Raises Nongfu Spring's Target Price to HKD 50.50

CLSA Raises Target Price for Nongfu Spring to HKD 59.6

UBS Raises Target Price on Nongfu Spring but Maintains Sell Rating

Deutsche Bank Raises Target Price for Nongfu Spring

Nongfu Spring Shifts to Offensive Strategy with Strong Stock Performance

CICC Maintains Target Price and Outperform Industry Rating for Nongfu Spring

NONGFU SPRING released FY2025 9 Months Earnings on March 24, 2026 (BJT), with actual revenue of HKD 42.46 B and actual EPS of HKD 1.1343

HINSANG GROUP

RIVERINE CHINA

PASHUN INT RTS

BRAINAURORA-B

SOFTMEDX

GOLDENPOWER

ZHONGKE GROUP

VISION SYNERGY

GEMILANG INTL

GHPC

Ordinary dividend (cash)

Ex Date: 2026.05.21, Cash dividend 1.1248 HKD

Citi has raised its target price for NONGFU SPRINGto HKD59.2, up from HKD58.5, maintaining a Buy rating. The bank's updated forecast predicts tea beverage sales will outperform other categories, with overall sales growth of 16% YoY. Net profit is expected to rise 13% YoY, slightly slower than revenue growth. The report reflects insights from field research conducted in 1Q26, despite potential challenges from rising PET resin costs.

- Citi updated its forecast model for NONGFU SPRING based on industry research conducted in the first quarter of 2026.  
- The bank projects 16% overall sales growth YoY, with tea beverage sales expected to outperform other categories, and estimates a 13% increase in net profit for the year.  
- Citi maintains a Buy rating on NONGFU SPRING and has raised the target price to HKD 59.2 from HKD 58.5.

AASTOCKS News

Citigroup

CITIGROUP INC 6.250 NON CUM SER II PFD WI

Citi Raises NONGFU SPRING  TP to HKD59.2, Upbeat on Tea Beverage Growth

02513

01138

00100

01347

02600

01898

00857

02714

02618

KNOWLEDGE ATLAS(02513) rose 9.43%, with a trading turnover 2.0 Billion HKD, and a year-to-date rose 739.1%. COSCO SHIP ENGY(01138) rose 6.99%, with a trading turnover 605.9 Million HKD, and a year-to-date rose 100.9%. CHALCO(02600) fell 4.58%, with a trading turnover 375.3 Million HKD, and a year-to-date rose 1.1%. CHINA COAL(01898) fell 4.11%, with a trading turnover 548.7 Million HKD, and a year-to-date rose 29%.

- The Hang Seng Index increased by 0.77%, with a year-to-date gain of 2.9%.  
- The Hang Seng Technology Index rose by 0.46%, but it has a year-to-date decline of 8.2%.  
- Notable company performances include Zhihu (02513) up 9.43% with a total transaction volume of HKD 2.01 billion and a year-to-date rise of 739.1%, while China Aluminum (02600) fell by 4.58%.

Top Gainers&Losers

KNOWLEDGE ATLAS

COSCO SHIP ENGY

MINIMAX-W

HUA HONG SEMI

CHALCO

CHINA COAL

PETROCHINA

MUYUAN

JD LOGISTICS

Top 5 HK Stock Gainers/Losers (>100B) (4.20)

STECH

02689

09863

36Kr learned that the Hang Seng Index rose by 0.77%, and the Hang Seng TECH Index increased by 0.46%; the paper packaging, food and beverage, and software services sectors led the gains, with Qunhe Technology rising over 101%, ND PAPER up over 6%, and NONGFU SPRING up over 5%; the oil and petrochemical, coal, and automotive sectors saw the largest declines, with LEAPMOTOR down over 5%, Zhongmei Energy down over 4%, and Zhonggang Petroleum down over 3%; southbound funds had a net outflow of HKD 3.909 billion

36Kr

Hang Seng TECH Index

ND PAPER

LEAPMOTOR

Hang Seng Index

MANYCORE TECH

China Coal Energy

CHK OIL

The Hang Seng Index closed up 0.77%, and the Hang Seng TECH Index rose 0.46%

02635

00968

02477

The Hang Seng Index closed at 26,376 points, up 216 points or 0.8%; the Hang Seng Tech Index reported 5,081 points, up 38 points or 0.8%. The National Index rose 68 points, reporting 8,913 points. Major stocks such as Tencent, China Construction Bank, and Xiaomi performed positively, while mid and small-cap stocks like XINYI SOLAR and NONGFU SPRING reached new highs. NUOBIKAN and WELLCELL HOLD saw significant price increases, while ZhiDa Technology and GuoXia Technology experienced declines

AASTOCKS

NUOBIKAN

XINYI SOLAR

WELLCELL HOLD

ICBC

BANK OF CHINA

Bank Of China

Hang Seng China Enterprises Index

TENCENT

XIAOMI-W

PING AN

Ping An

BABA-W

Alibaba

SUNNY OPTICAL

SHENZHOU INTL

TECHTRONIC IND

INSILICO

51WORLD

ZHIDA TECH

GUOXIA TECH

BOC HONG KONG

Bank of China

Tencent

TENCENT-R

Tencent HK SDR 10to1

Tencent Holdings Limited

Xiaomi Corporation

XIAOMI-WR

Xiaomi HK SDR 2to1

PING AN-R

Ping An Insurance

BABA-WR

Alibaba HK SDR 5to1

Shenzhou International

Techtronic Industries

The "Half-Day Express" reports that the Hang Seng Index closed at 26,376 points, up 216 points; the Hang Seng Tech Index closed at 5,081 points, up 38 points. XINYI SOLAR rose over 7%, and China Construction Bank, Industrial and Commercial Bank of China, Bank of China, NUOBIKAN (new), and WELLCELL HOLD reached new highs

FTXG

Haitong International released a research report, pointing out that NONGFU SPRING has shown resilience in competition, expecting to achieve high-quality performance growth in 2025, with revenue surpassing RMB 50 billion for the first time. The target price has been raised from HKD 55.9 to HKD 59.8, maintaining an "outperform the market" rating. Management expects double-digit revenue growth in 2026, and the expansion of overseas channels has already begun. Revenue is forecasted to be RMB 59.441 billion, RMB 66.8 billion, and RMB 74.97 billion for 2026 to 2028, with net profit after tax expected to be RMB 17.665 billion, RMB 20.126 billion, and RMB 22.975 billion respectively

First Trust NASDAQ Food & Beverage

Haitong International: NONGFU SPRING demonstrates resilience in competition, raising target price to 59.8 yuan

515170

159736

159843

Guoyuan Securities (HK) has reaffirmed its Buy rating on Nongfu Spring Co., Ltd. Class H (9633), setting a price target of HK$58.00. This follows a similar Buy rating from Goldman Sachs on March 26, while Jefferies maintained a Hold rating on March 25.

- Guoyuan Securities (HK) has maintained a Buy rating on Nongfu Spring Co., Ltd. Class H, with a price target of HK$58.00.  
- Goldman Sachs also gave a Buy rating on the stock in a report dated March 26, while Jefferies maintained a Hold rating on March 25.  
- These ratings indicate varying levels of confidence among analysts regarding the company's market performance.

Tip Ranks

ChinaAMC CSI Food & Beverage Sub-Industry ETF

Tianhong CSI Food and Beverage ETF

China Merchants Guozheng Food and Beverage ETF

Guoyuan Securities (HK) Keeps Their Buy Rating on Nongfu Spring Co., Ltd. Class H (9633)

Jefferies has maintained a Hold rating on Nongfu Spring Co., Ltd. Class H (9633) with a price target of HK$50.50, while the shares closed at HK$46.42. The analyst consensus is a Moderate Buy with an average price target of HK$55.92.

- Jefferies maintained a Hold rating on Nongfu Spring Co., Ltd. Class H with a price target of HK$50.50 as of March 25.  
- The company's shares closed at HK$46.42, which is below the price target.  
- The analyst consensus for Nongfu Spring Co., Ltd. Class H indicates a Moderate Buy with an average price target of HK$55.92.

Jefferies Sticks to Their Hold Rating for Nongfu Spring Co., Ltd. Class H (9633)