Bank of America Securities issued a research report indicating that Nongfu Spring's full-year results for the previous year exceeded expectations across the board. Sales and net profit after tax increased by 22.5% and 30.9% year-on-year, respectively, with second-half growth reaching 30% and 40.2%, surpassing the bank's forecasts. The bank raised its earnings per share forecasts for the group for the current and next fiscal years by 8% and 6%, respectively, and increased the target price from HK$56 to HK$60, reiterating a "Buy" rating. The bank projects that the group's sales will achieve mid-teens growth this year, primarily driven by three key segments. In the packaged water business, revenue is expected to return to 2023 levels, supported by proactive channel investments. For the tea beverage segment, sales momentum is anticipated to continue, fueled by ongoing flavor innovations and broader rollout of larger package sizes. In the juice business, the group is positioned to outperform the market by capitalizing on demand for healthier, higher-quality products, while new categories such as coffee and electrolyte water offer additional growth opportunities.
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