[Brokerage Focus] China Merchants reiterates a "Strong Buy" rating on NONGFU SPRING (09633), stating that the company is expected to achieve both valuation and performance growth by 2025.
Jinwu Financial News | China Merchants has published a Research Report stating that NONGFU SPRING (09633) has launched green bottle water, positioning it as a strategic product to seize market share, which is a must-have. For small package water in ready-to-drink scenarios, sales rely more on channel push; green bottle water offers substantial benefits to channels, leading to positive willingness from Dealers and end retailers to stock up after its launch, and the company's market share began to recover in the second half of the year. Considering that it is challenging for Other brands to imitate, the market share of NONGFU packaging water is expected to exceed expectations. The company aims not only to restore market share to pre-public opinion event levels but also to further lead the market. The bank indicated that referring to experiences from the USA and Japan, the average consumption of packaged beverages in our country is expected to increase.
Nongfu Spring (HKG:9633) Seems To Use Debt Rather Sparingly
The CSI Consumer 360 index sector is under pressure as MENGNIU DAIRY (02319) falls by 4.59%. Institutions indicate that there is a lag in policy transmission, and the sustainability of consumer recovery remains to be observed.
Jinwu Financial News | The CSI Consumer 360 index Sector is generally under pressure, as of the time of writing, MENGNIU DAIRY (02319) has fallen by 4.59%, CHINA RES BEER (00291) has dropped by 4.13%, NONGFU SPRING (09633) has decreased by 3.31%, and HAIDILAO (06862) has declined by 3.41%. On the news front, Guoyuan International released a Research Report indicating that the consumption market will be weak in 2024, putting pressure on the Sector's fundamentals. After a brief rebound following the government's comprehensive policy rollout at the end of September, the market has retreated. Year-to-date, the Hang Seng Select Consumer Sector has fallen by 13.39%, underperforming the Large Cap; the Hong Kong Stock Shenwan Food & Beverage Index has seen a cumulative decline of 3.7.
Hong Kong stocks fluctuate | nongfu spring (09633) now up more than 7%, the competition in packaged water is expected to gradually ease, institutions are bullish on further increasing industry concentration.
Nongfu Spring (09633) is currently up over 7%, as of the time of writing, up 6.65%, trading at 35.3 Hong Kong dollars, with a transaction value of 0.304 billion Hong Kong dollars.
This Nongfu Spring Insider Increased Their Holding In The Last Year
Zhong Shuangshuang said she looks down on entrepreneurs who live-stream sales, Zhou Hongyi responded from afar: You should build your personal brand.
According to Sina Technology news on November 22, in a recent communication with Sina Technology, Zhong Shanshan, the founder, chairman, and general manager of nongfu spring, stated, "I will never do live streaming sales. I believe those companies are flat, while my company is vertical, I have roots." In response, Zhou Hongyi, the founder of 360 Group, recently remarked, "As an entrepreneur, it is an unshirkable responsibility to do everything possible to make one’s products popular." In Zhou Hongyi's view, "Many entrepreneurs feel that after their companies have grown larger and they have more people working for them, they no longer need to get involved themselves, becoming absentee owners, and they do not need to put themselves in the spotlight."
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