CMS·2025-08-27 02:32Investment Rating - The report maintains a "Strong Buy" investment rating for the company with a target price of 55.00 HKD, while the current stock price is 46.96 HKD [3]. Core Views - The company's H1 2025 results show revenue of 25.62 billion CNY and net profit of 7.62 billion CNY, reflecting year-on-year growth of 15.6% and 22.2% respectively, indicating strong brand power and profitability [1][7]. - The bottled water segment is expected to recover rapidly, with long-term brand and channel capabilities leading the market. The penetration rate of the "Oriental Leaf" brand is projected to grow, with a potential increase in channel numbers by 5%-10% in 2026 [1][7]. - The company is strategically expanding into coffee, carbonated tea, and plant-based beverages, which may create a second growth curve [1][7]. Financial Data and Valuation - The company forecasts total revenue of 42.67 billion CNY for 2023, with a year-on-year growth of 28.4%. The net profit is expected to be 12.08 billion CNY, reflecting a growth of 42.2% [2][10]. - The gross profit margin for H1 2025 is reported at 60.3%, an increase of 1.5 percentage points year-on-year, driven by lower raw material costs [7]. - The report projects earnings per share (EPS) of 1.31 CNY, 1.54 CNY, and 1.75 CNY for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (PE) ratios of 32.7, 27.9, and 24.5 [8][11].