Nongfu Spring (9633) Earnings: 1H Net Income of 6.24 Billion Yuan Meets Estimates

Nongfu Spring on Smartkarma

Analysts on Smartkarma have provided positive coverage of Nongfu Spring (9633 HK) despite its flat stock price. Ming Lu‘s research highlights that criticism against the company might actually be beneficial, with tea revenue soaring by 83% in 2023. The company achieved growth and higher margins, but its stock price has not reflected this. Lu believes that Nongfu Spring’s performance aligns with the trend towards sugar-free products and recommends a buy stance on the stock.

Steve Zhou, CFA, also delivered a bullish outlook on Nongfu Spring, noting strong 2023 results. Net profit in the second half of 2023 soared by 62% year-over-year, with sales increasing by 33% year-over-year. The standout performer was the tea beverage category, which experienced an 83% growth for the year. Despite short-term negative publicity, Zhou finds Nongfu Spring’s valuation attractive, trading at 33 times 2024 earnings. Overall, analysts on Smartkarma are optimistic about Nongfu Spring’s future prospects and commend its solid financial performance.

A look at Nongfu Spring Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Nongfu Spring shows a promising long-term outlook. The company receives high scores in Growth and Resilience, indicating strong potential for future expansion and the ability to weather economic uncertainties. With a solid Dividend score, Nongfu Spring also presents an attractive option for investors seeking stable income generation. However, the company lags in Value and Momentum scores, suggesting that it may be currently overvalued and experiencing slower short-term growth.

Nongfu Spring Co. Ltd. is a beverage company that specializes in providing a range of soft drinks, including bottled mineral water, fruit juice, sports drinks, and tea beverages. Additionally, the company offers convenient door-to-door delivery services for its barreled mineral water. With a focus on growth, resilience, and dividends, Nongfu Spring positions itself as a strong player in the competitive beverage industry, poised for long-term success.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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