The Zhitong Finance App learned that Goldman Sachs released a research report saying that Nongfu Spring (09633)'s performance in the first half of the year was in line with expectations. Management reiterated their confidence in double-digit growth in sales and net profit for the full year of 2026. The sales trend from July to August was in line with expectations and maintained healthy growth. The bank maintains a “buy” rating with a target price of HK$59.8.

The bank raised its sales forecast for 2026 to 2028, mainly driven by strong tea performance. The bank expects sales and recurring net profit to increase by 14% and 12% respectively in 2026, with sales growth of about 12% year-on-year in the second half of the year. Considering the increase in the cost pressure of PET and jasmine tea raw materials in the second half of the year, regular net profit is expected to increase by about 6% in the second half of the year, generally maintaining the net profit forecast for 2028.

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