"Goldman Sachs: Nongfu Spring's performance last year exceeded expectations, rated as 'buy'"

Goldman Sachs released a research report stating that Nongfu Spring's sales and net profit in 2025 are expected to reach 52.6 billion RMB and 15.9 billion RMB respectively, with a year-on-year growth of 23% and 31%, higher than the bank's forecast by 3% and 4%. The sales of packaged water are expected to increase by 17.3% compared to the previous year. The bank maintains a "buy" rating with a target price of 60 Hong Kong dollars. The report shows that Nongfu Spring's tea sales in the second half of last year grew significantly, with a year-on-year increase of 38%, 21% higher than expected, reflecting the effectiveness of the "open the cap to win prizes" promotion and successful winter channel strategy. Juice sales also increased by 33%, exceeding expectations. The gross profit margin expanded by 3.4 percentage points during the period, benefiting from the decrease in PET, pulp, and sugar costs, as well as the increase in the proportion of tea drinks.