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<Research> UBS Raises TP for NONGFU SPRING (09633.HK) to HKD41.6, Earnings Forecast Revised Up but Maintains 'Sell' Rating
Recommend 4 Positive 7 Negative 4 |
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UBS released a research report stating that NONGFU SPRING (09633.HK) exceeded expectations in its fiscal year 2025 results, with revenue and net profit growing by 22.5% and 30.9% year-on-year, reaching RMB52.553 billion and RMB15.868 billion, respectively. In the second half of last year, revenue and net profit increased by 30% and 40% year-on-year, reaching RMB26.931 billion and RMB8.246 billion. During the period, the gross profit margin benefited from the decline in costs of raw materials such as PET, cartons, and sugar, rising by 2.4 ppts year-on-year to 60.5%. The management did not provide specific guidance for the gross and net profit margins for 2026, mainly considering the volatility in PET prices and plans to increase marketing investment. The company has secured part of its PET supply and has no plans to raise prices, while maintaining strict expense management. In terms of overseas expansion, the short-term focus will be on the Hong Kong and ASEAN markets. UBS raised the group's earnings forecast, increasing the target price from HKD37.24 to HKD41.6, equivalent to a forecasted 24x P/E ratio for 2026 and 22x P/E ratio for 2027, maintaining a 'Sell' rating. (hc/w) Auto-translated by third-party software This translation was auto-generated by third-party software. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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