Citigroup has released a research report updating the forecast model for NONGFU SPRING (09633) based on findings from on-the-ground surveys of the industry's first-quarter operations. The report continues to project that the company's tea beverage sales will outperform other categories this year. It is estimated that sales of packaged water, tea beverages, functional drinks, and juice will increase by 9%, 22%, 15%, and 15% year-over-year, respectively. The firm has assigned a "Buy" rating to NONGFU SPRING and raised its target price from HK$58.50 to HK$59.20.
Citigroup expects that the positive operating leverage resulting from a projected 16% year-over-year increase in overall sales will drive a 13% growth in net profit for the current year. The bank's net profit forecasts for fiscal years 2026 and 2027 remain largely unchanged.
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