Ge Long Hui·2025-08-29 02:33Core Viewpoint - Citigroup's research report indicates that Nongfu Spring's mid-year performance exceeded expectations, with high visibility for growth in the second half of the year [1] Financial Performance - In the first half of the year, sales and net profit increased by 16% and 22% year-on-year, reaching the upper limit of market expectations [1] - Core operating profit grew by 31% year-on-year, surpassing expectations due to a faster-than-expected recovery in gross margin and effective control of selling and administrative expenses [1] Growth Outlook - The strong growth in bottled water sales is expected to continue in the second half of the year, supported by an improved product mix that reduces price volatility and healthy channel inventory levels [1] - Nongfu Spring is anticipated to solidify its leadership position in the sugar-free tea market through promotions and the introduction of new flavor products, while also exploring additional growth opportunities [1] Analyst Recommendations - Bank of America Securities has raised its earnings per share forecast for Nongfu Spring for the next two years by 2%, increasing the target price from HKD 50 to HKD 52, and continues to list Nongfu Spring as a preferred stock in the beverage industry, reaffirming a "Buy" rating [1]