＜Research＞CICC Chops NONGFU SPRING (09633.HK) TP to $45 as Bottled Water Sales Pressured

　　CICC released a research report forecasting that NONGFU SPRING (09633.HK) -2.400 (-7.251%) Short selling $187.94M; Ratio 42.716% will post a high single-digit YoY revenue growth in 1H24, mainly driven by the intact performance of tea beverages and juices, and a high single-digit YoY growth for net profit, mainly due to the improvement in product mix offset the unfavorable impact from bottled water, keeping net profit margin stable.

　　CICC believed that its bottled water sales will be under pressure in the short term, and may recover in the long term, with continuously strengthening competitiveness in the beverage industry.

　　Related NewsDaiwa Downgrades NONGFU SPRING (09633.HK) to Hold, Chops TP to $36

　　CICC lowered its 2024/ 2025 earnings forecasts by 7%/ 10%, respectively. Taking into consideration of the market valuation downside, CICC chopped its target price by 18% to $45, which corresponds to the forecasted PE ratio of of 35.7x/ 32.3x for 2024/ 2025 each, with rating kept at Outperform.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-24 12:25.)

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