Movement Alert|Nongfu Spring Rises 3.12% in Regular Trading, Oversold Rebound Extends as Raw Material Cost Pressure Eases

Market Focus07-03

On July 3, Nongfu Spring rose 3.12% in regular trading, trading at HK$41.26/share, with turnover of HK$18.2 million. The stock continued its rebound following a sharp 7%+ sell-off on June 30 triggered by cost concerns and competitor price hikes.

On the news front, PET bottle chip prices have retreated over 20% from recent highs, materially easing input cost pressure for the packaged water industry. Multiple brokerages maintain bullish stances — Guohai Securities initiated coverage with a Buy rating, while CITIC Construction Investment reiterated its Overweight rating. Both highlighted the company's cost mitigation capabilities through lighter bottle designs and a rising mix of high-margin sugar-free tea products, with gross margins improving from 58.1% to 60.5%.

Within the Soft Drinks sector, the overall tone was positive. Among peers, EASTROC rose 4.01%, CR Beverage rose 1.46%, and China Foods gained 0.95%.

(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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