CMB International: Raising the target price of Nongfu Spring (09633) slightly to HK$60.93, the gross margin expansion was better than expected

The Zhitong Finance App learned that CMB International released a research report stating that the target price of Nongfu Spring (09633) was slightly raised to HK$60.93. The company's revenue and net profit for the first half of 2026 increased 16% and 16.6%, respectively, to RMB 29.7 billion and RMB 8.9 billion, which is 2% and 4% higher than market expectations. Under the pressure of rising PET (polyethylene terephthalate) costs, the company's gross margin still rose slightly by 0.6 percentage points to 60.9% during the period, and the gross margin expansion was better than expected. On the business side, the tea business continues to be a growth engine, with revenue surging 30% year over year. The related business currently contributes more than half of the company's operating profit; the bottled water business still recorded 2.1% growth under the contraction of the industry, and the market share rebounded.