Zhi Tong Cai Jing·2025-08-29 09:52Core Viewpoint - The report from Jianyin International indicates that Nongfu Spring (09633) demonstrated robust performance in the first half of the year, with net profit increasing by 22% to 7.622 billion RMB, surpassing both the bank's and market expectations [1] Financial Performance - 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 a historical high of 60.3%, primarily due to a decrease in raw material and packaging costs [1] - 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] Forecast Adjustments - The bank maintains a "outperform" rating for Nongfu Spring and 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] - The target price has been adjusted from 48.5 HKD to 55.8 HKD [1]