Movement Alert|Nongfu Spring Rises 4.19% in Regular Trading, Institutional Support Drives Rebound After Prior Sell-Off

Market Focus07-02

On July 2, Nongfu Spring rose 4.19% in regular trading, trading at 40.46 HKD/share, with turnover of HKD 148 million. The rebound follows a sharp decline of over 7% on June 30, when the stock led losses among Hang Seng Index constituents amid cost pressures and competitor price hike expectations, recording HKD 190 million in short-selling volume that session.

Multiple institutions have maintained bullish outlooks. Guohai Securities initiated coverage with a Buy rating, while CITIC Construction Investment maintained an Overweight rating. Both noted that the company has improved gross margins — from 58.1% to 60.5% — through lighter bottle designs and a rising proportion of high-margin sugar-free tea products, demonstrating cost-hedging capability. The companys packaged water segment is gradually recovering, while Oriental Leaf and other sugar-free tea categories continue to deliver strong growth, with product mix optimization driving profitability improvement.

Within the Soft Drinks sector, 5100 Xizang up 3.7%, China Foods up 3.24%, CR Beverage up 1.37%, EASTROC down 0.19%, Hungfooktong down 1.39%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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