Nongfu Spring Co., Ltd.
9633.HK · HKSE
Company research
Nongfu Spring Co., Ltd. (9633.HK), founded in 1996 by Zhong Shanshan and headquartered in Hangzhou, China, is the country's largest packaged drinking water supplier and one of the top beverage companies in China, listed on the Hong Kong Stock Exchange since September 2020. The company operates through five key segments — Water Products, Ready-To-Drink Tea Products, Functional Drinks Products, Juice Beverage Products, and Other Products — offering a diverse portfolio that includes natural mineral water, tea beverages such as the iconic Oriental Leaf, functional drinks, fruit juices, soda water, coffee, and plant-based yogurts. Guided by its "natural and healthy" philosophy and the motto "We are the porters of nature," Nongfu Spring sources water exclusively from premium natural reserves across China, maintaining a strong commitment to product quality and purity. Operating as a subsidiary of Yangshengtang Co., Ltd. with approximately 28,000 employees, the company also extends its business into agricultural products and supply chain management services, underpinning its dominant position in China's non-alcoholic beverage market.
Research reports
The report argues that Nongfu Spring delivered high-quality 2025 results with revenue up 22.5% and net profit up 30.9%, achieving record gross and net margins thanks to lower raw-material costs, tighter pricing discipline, and operational efficiency, with tea beverages becoming the largest business and packaged water recovering strongly. It forecasts continued double-digit revenue growth and global expansion but stresses risks from intensifying beverage-sector competition, PET and other input price volatility, food safety, and a potentially weak consumption recovery.
CMB International Global Markets · March 26, 2026Nongfu Spring (9633 HK) – FFY25: Strong tea & juice biz; facing challenges to maintain high growthCMBI highlights that FY25 revenue rose 22.5% and net profit 30.9%, driven by robust tea and juice growth, recovery in packaged water, and sharply lower SG&A post‑Olympic year, but notes management gave only revenue guidance amid an uncertain margin outlook. The analysts maintain a BUY view with an HK$60.88 target price while warning that intensified competition and geopolitically driven raw-material cost risk could make sustaining the recent high growth and strong margins more difficult.
CMB International Global Markets · September 1, 2025Nongfu Spring (9633 HK) – Solid 1H25 fuelled by strong non-water bizThis company update reports that 1H25 revenue grew 15.6% and net profit 22%, with tea beverages, functional drinks, and juice delivering strong growth and margin expansion while packaged water recovered on a low base, supporting higher forward earnings and a raised HK$57.75 target price. It views Nongfu’s leadership in tea, widening competitive moat, and emerging categories as new growth engines but flags food safety incidents and raw-material price hikes as key risks.
Haitong International · August 27, 2025Nongfu Spring (9633 HK) – Return to double-digit growth, coupled with efficient expense managementHaitong notes that H1 2025 revenue and profit returned to double-digit growth, with packaged water rebounding after prior brand-damage issues, tea beverages surpassing RMB10bn in half-year revenue and becoming the largest segment, and gross margin and operating margin improving on lower PET/sugar costs and disciplined promotions. The report maintains an Outperform rating with an HK$55.90 target price, emphasizing strong ROE and valuation premium while citing competition, raw-material price swings, food safety, and slower-than-expected consumption recovery as principal risks.