Nongfu Spring Co., Ltd. Class H (9633) AI Stock Analysis

• Market Cap: HK$613.49B
• Dividend Yield: 1.53%
• Average Volume (3M): 5.87M
• Price to Earnings (P/E): 41.1
• Beta (1Y): 0.87
• Revenue Growth: 4.14%
• EPS Growth: 7.35%
• Country: HK
• Employees: 20,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.74
• Shares Outstanding: 5,034,666,500
• 10 Day Avg. Volume: 5,293,182
• 30 Day Avg. Volume: 5,874,667
• PEG Ratio: 31.65
• Price to Book (P/B): 11.11
• Price to Sales (P/S): 8.36
• P/FCF Ratio: 77.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$52.84
• Price Target Upside: -2.96% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 76 Outperform
• Price Target: HK$62.00 ▲(13.87% Upside)

Nongfu Spring Co., Ltd. has a strong overall stock score driven by robust financial performance and positive technical indicators. However, the high P/E ratio suggests potential overvaluation, which slightly tempers the overall score.

Positive Factors

Brand Strength

The company's strong brand presence and emphasis on purity and health provide a competitive advantage, ensuring customer loyalty and market leadership in the non-alcoholic beverage sector.

Distribution Network

An extensive distribution network enhances product availability and visibility, supporting sustained revenue growth and market penetration in the competitive beverage industry.

Revenue Growth

Consistent revenue growth indicates robust demand for the company's products, reflecting successful market strategies and a strong position in the non-alcoholic beverage sector.

Negative Factors

Increasing Debt Levels

Rising debt levels can strain financial resources and limit the company's ability to invest in growth opportunities, potentially impacting long-term financial health.

Net Profit Margin Decrease

A decrease in net profit margin, though still healthy, suggests potential cost pressures or pricing challenges that could affect profitability if not addressed.

Missing Cash Flow Data

Incomplete cash flow data for 2024 limits the ability to fully assess the company's cash generation capacity, which is crucial for evaluating financial stability and investment potential.

Nongfu Spring Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Nongfu Spring Co., Ltd. produces and markets packaged drinking water and beverage products primarily in Mainland China. It operates through five segments: Water Products, Ready-To-Drink Tea Products, Functional Drinks Products, Juice Beverage Products, and Other Products. The company also offers tea beverage products; functional drink products; fruit juice products; and other beverage products, such as soda water beverages, sparkling flavored beverages, coffee beverages, and plant-based yogurt products, as well as agricultural products comprising fresh fruits. In addition, it provides supply chain management services. The company was founded in 1996 and is headquartered in Hangzhou, China. Nongfu Spring Co., Ltd. is a subsidiary of Yangshengtang Co., Ltd.

How the Company Makes Money

Nongfu Spring Co., Ltd. primarily generates revenue through the sale of bottled water and other non-alcoholic beverages. Its key revenue streams include the retail distribution of its products through supermarkets, convenience stores, and online platforms. The company leverages its brand strength and extensive distribution network to maintain a significant share of the bottled water market in China. Nongfu Spring also benefits from strategic partnerships with retailers and distributors, ensuring widespread availability and visibility of its products. Additionally, its emphasis on sustainable and eco-friendly practices aligns with consumer preferences, further driving sales and profitability.

Nongfu Spring Co., Ltd. Class H Financial Statement Overview

Summary

Nongfu Spring Co., Ltd. demonstrates strong financial performance with consistent revenue growth and robust gross profit margins. The balance sheet is stable with a healthy debt-to-equity ratio, though increasing debt levels require attention. Cash flows are generally positive, despite some missing data for 2024.

Income Statement

Nongfu Spring Co., Ltd. demonstrates strong financial performance with consistent revenue growth from 2019 to 2024. The gross profit margin is robust, indicating effective cost management. Although the net profit margin slightly decreased in 2024 compared to 2023, it remains healthy. The EBIT and EBITDA margins are solid, reflecting efficient operations and strong earnings before interest and taxes.

Balance Sheet

The balance sheet is strong with a healthy debt-to-equity ratio and a solid equity ratio, indicating financial stability. The return on equity (ROE) is impressive, reflecting the company's efficient use of shareholders' equity. However, the total debt has increased over the years, which could pose a risk if not managed properly.

Cash Flow

Cash flow from operations has been robust, though the operating cash flow to net income ratio for 2024 is unavailable. Free cash flow has shown growth in previous years, but specific growth rates for 2024 are not calculable due to missing current period data. The company maintains a positive free cash flow to net income ratio, which indicates good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.35B	42.90B	42.67B	33.24B	29.70B	22.88B
Gross Profit	27.34B	24.92B	25.41B	19.10B	17.66B	13.51B
EBITDA	18.78B	16.51B	18.42B	11.80B	10.96B	8.55B
Net Income	13.51B	12.12B	12.08B	8.50B	7.16B	5.28B
Balance Sheet
Total Assets	64.39B	53.16B	49.14B	39.25B	32.90B	25.86B
Cash, Cash Equivalents and Short-Term Investments	19.14B	12.25B	24.23B	15.29B	14.99B	9.12B
Total Debt	4.55B	3.75B	3.21B	2.52B	2.59B	2.47B
Total Liabilities	33.02B	20.87B	20.57B	15.17B	12.15B	10.37B
Stockholders Equity	31.37B	32.29B	28.57B	24.08B	20.74B	15.49B
Cash Flow
Free Cash Flow	9.07B	4.62B	12.44B	7.69B	8.91B	6.15B
Operating Cash Flow	15.89B	11.02B	17.30B	12.04B	11.40B	8.43B
Investing Cash Flow	-7.94B	-4.50B	-14.28B	-9.43B	-5.32B	-4.66B
Financing Cash Flow	-7.91B	-8.06B	-7.02B	-5.37B	-1.89B	1.72B

Nongfu Spring Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9633, the sentiment is Positive. The current price of 54.45 is above the 20-day moving average (MA) of 53.81, above the 50-day MA of 51.77, and above the 200-day MA of 41.09, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 53.64 is Neutral, neither overbought nor oversold. The STOCH value of 45.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9633.

Nongfu Spring Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9633	76 Outperform	HK$613.49B	41.14	46.45%	1.53%	4.14%	7.35%
2097	73 Outperform	HK$159.82B	―	―	―	―	―
0220	72 Outperform	$37.06B	15.87	17.10%	5.51%	8.19%	23.16%
1837	71 Outperform	HK$2.49B	11.22	13.72%	3.33%	11.89%	27.80%
2175	64 Neutral	HK$1.25B	11.56	5.09%	―	-0.48%	-26.92%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1475	58 Neutral	HK$7.19B	38.15	5.18%	1.56%	7.44%	-42.52%

Nongfu Spring Co., Ltd. Class H Corporate Events

Nongfu Spring Reports Strong Interim Results for 2025

Nongfu Spring Co., Ltd. reported a significant financial performance for the first half of 2025, with a 15.6% increase in total revenue to RMB25,622 million and a 22.1% rise in profit attributable to the owners, reaching RMB7,622 million. This strong performance underscores the company’s robust market positioning and growth trajectory, benefiting stakeholders by enhancing shareholder value and reinforcing its competitive stance in the beverage industry.

The most recent analyst rating on (HK:9633) stock is a Buy with a HK$48.00 price target. To see the full list of analyst forecasts on Nongfu Spring Co., Ltd. Class H stock, see the HK:9633 Stock Forecast page.

Nongfu Spring Announces Board Meeting to Review Interim Results

Nongfu Spring Co., Ltd. has announced a board meeting scheduled for August 26, 2025, to discuss and approve the unaudited interim results for the first half of the year and to consider the recommendation of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns to shareholders, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:9633) stock is a Sell with a HK$24.24 price target. To see the full list of analyst forecasts on Nongfu Spring Co., Ltd. Class H stock, see the HK:9633 Stock Forecast page.