HK Movers | Nongfu Spring Jumps 5% as Institution Expects Revenue to Exceed Expectations in H1

On July 25, Nongfu Spring rose more than 5% at the start of trading, with institutions expecting the company's first-half revenue growth to exceed market expectations.

In related news, the Wahaha Zong Clan's hundred-billion-yuan property dispute case will see new developments on August 1. According to the Hong Kong High Court's website, the case will be heard in the Hong Kong High Court on that date. A report by Credit Lyonnais Securities Asia suggests that the property dispute may affect the sales and market share of Wahaha, while peers like Nongfu Spring and CR Beverage are expected to benefit, accelerating their market share growth.

A report by CICC forecasts that Nongfu Spring's revenue in the first half of 2025 will grow by 18% year-on-year, with profits increasing by 20% year-on-year. The revenue growth is expected to exceed market expectations mainly due to better-than-expected performance in tea drinks and juices, while profit growth is in line with expectations. The bank notes that, considering the lower base in the second half of 2025, potential consumer returns due to public opinion events, and strong terminal sales momentum, the company's revenue growth rate is expected to improve in the second half. Although the packaged water business still lags behind 2023, the trend of monthly increasing market share is clear. The bank believes that last year's public opinion impacts may gradually dissipate.