Zhi Tong Cai Jing·2026-01-14 08:40Group 1 - The core viewpoint of the report is that the company Nongfu Spring (09633) has had its profit forecast slightly raised, maintaining a "highly confident outperform" rating, with the target price increased from HKD 55 to HKD 57.6 [1] - The sales growth rate for Nongfu Spring is projected to accelerate from 16% year-on-year in the first half of 2025 to 26% in the second half [1] - Tea products are expected to perform particularly well, with a projected year-on-year growth of 35%, while the market share for bottled water is anticipated to continue recovering [1] Group 2 - The report estimates that improved product mix, lower raw material costs, and savings in selling, general, and administrative expenses (SG&A) will lead to an expansion in gross and net profit margins [1] - It is expected that the net profit margin in the second half of 2025 will be slightly higher than in the first half [1] - The forecasted net profit for 2025 is approximately 5% higher than the market consensus, with strong performance in the second half likely to drive short-term stock price increases [1]