＜Research＞Jefferies Trims NONGFU SPRING (09633.HK) TP to $37.4, Predicts 1H24 NP Up 6.8% YoY

　　Jefferies forecasted in a research report that continued strong sales of NONGFU SPRING (09633.HK) -1.950 (-5.891%) Short selling $102.34M; Ratio 30.057% 's ready-to-drink tea products will drive first-half revenue growth of 8% YoY to RMB22.2 billion, partially offset by a decline in its bottled water business. The company's interim net profit is expected to grow 6.8% to RMB6.2 billion, while adjusted net profit is expected to elevate 8%.

　　While NONGFU SPRING saw sales pressure from April to May this year, the situation in June has improved. Jefferies predicted the company's full-year bottled water business to fall 18% this year, with a possibility of improving next year. As for tea drinks, the broker estimated that sales in 1H would surge 55%, while sales of functional beverages and fruit juices would lift 20% and 10%.

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　　NONGFU SPRING said it will invest more in marketing in 2H24 to boost its water business. The broker lowered its net profit forecasts on the company by 11%, 11% and 10% for 2024/25/26 in response to the sales revisions.

　　Jefferies reduced NONGFU SPRING's target price from $43.9 to $37.4 and maintained its Hold rating.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-23 16:25.)

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