CICC: Maintains "Outperform" rating on Nongfu Spring (09633.HK) and raises target price to 54 Hong Kong dollars.

Zhijing Finance App learned that Zhongjin released a research report stating that considering Nongfu Spring (09633.HK) has strong sales momentum, it raised its profit forecast for 2025/2026 by 5%/7% to 14.7/16.8 billion yuan. The current corresponding P/E ratios for 2025/2026 are 32/28 times. Taking into account the industry's valuation trending upwards, the target price was raised by 35% to 54 Hong Kong dollars, corresponding to P/E ratios of 38/33 times for 2025/2026 and a 20% upside potential. The company maintains an outperform industry rating. The bank expects the company's 1H25 revenue to increase by 18% year-on-year and profit by 20%, with revenue growth exceeding market expectations, mainly due to better-than-expected performance in tea drinks and fruit juice, with profits growing in line with expectations.