Shares of NONGFU SPRING surged 5.06% during intraday trading on Wednesday, extending a strong upward trend fueled by bullish institutional endorsements.
Bank of America Securities recently designated the company as its top pick in China's beverage industry, citing solid revenue growth and resilient profit margins despite a roughly 20% year-over-year increase in PET plastic costs and intensifying competition. Additionally, CICC maintained its "overweight" rating and projected net profit growth of 16.59%, 14.16%, and 13.07% over the next three years, respectively. The improved valuation appeal following prior share price corrections further supported the rally.
The broader soft drinks sector also showed strength, with peers like 5100 XIZANG, CR BEVERAGE, and CHINA FOODS posting gains.
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