Citigroup: Raise NONGFU SPRING (09633) target price to HKD 59.2, optimistic about the growth of the tea beverage business.

Citigroup released a research report stating that, based on the on-the-ground investigation of the industry operations in the first quarter of this year, they have updated their forecasting model for NONGFU SPRING (09633). They continue to expect the company's tea sales to outperform other categories this year, with anticipated year-on-year growth of 9% for packaged water, 22% for tea drinks, 15% for functional beverages, and 15% for fruit juice sales. The bank has given NONGFU SPRING a "buy" rating with a target price raised from 58.5 Hong Kong dollars to 59.2 Hong Kong dollars. The bank anticipates that the positive operational leverage brought about by the 16% year-on-year growth in overall sales for the group will lead to a 13% year-on-year increase in net profit this year. The net profit forecasts for the 2026 and 2027 fiscal years are expected to remain largely unchanged.