Zhi Tong Cai Jing·2025-08-29 09:53Core Viewpoint - Jianyin International has upgraded the target price for Nongfu Spring (09633) to HKD 55.8, maintaining a "Outperform" rating due to strong performance in the first half of the year [1] Financial Performance - Nongfu Spring's net profit increased by 22% to RMB 7.622 billion, exceeding both Jianyin International's and market expectations [1] - Revenue growth reached 16%, with all product categories recording double-digit growth [1] - The company's gross margin expanded by 1.5 percentage points to 60.3%, a historical high, primarily due to a decrease in raw material and packaging costs [1] Cost Management - Selling, general, and administrative expenses ratio decreased by 2.8 percentage points to 23.7%, indicating effective execution of sales and marketing strategies amid intense competition [1] Earnings Forecast - Jianyin International has raised its earnings forecasts for the next two fiscal years by 6% and 4% respectively, reflecting better-than-expected revenue and profit margin performance [1]