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

• Market Cap: HK$452.11B
• Dividend Yield: 2.07%
• Average Volume (3M): 6.06M
• Price to Earnings (P/E): 34.4
• Beta (1Y): 0.84
• Revenue Growth: -1.32%
• EPS Growth: -1.49%
• Country: HK
• Employees: 20,000
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.58
• Shares Outstanding: 5,034,666,500
• 10 Day Avg. Volume: 5,572,252
• 30 Day Avg. Volume: 6,055,644
• PEG Ratio: 2.75
• Price to Book (P/B): 18.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 56.93
• 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$43.60
• Price Target Upside: 8.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: HK$45.00 ▲(12.08%Upside)

Nongfu Spring Co., Ltd. has a strong financial foundation and positive technical indicators, supporting a solid stock performance. However, the high P/E ratio suggests potential overvaluation, which tempers the overall score. The absence of earnings call and corporate event data means the score is primarily driven by financial and technical aspects.

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

Company Description

Nongfu Spring Co., Ltd. Class H (9633) is a leading bottled water and beverage company based in China. Established in 1996, the company has become one of the most recognizable brands in the Chinese beverage industry. Nongfu Spring primarily operates in the production and distribution of packaged drinking water, but it also offers a variety of other beverage products, including tea drinks, functional drinks, and juice drinks. The company is well-known for its emphasis on natural water sources and its commitment to quality and sustainability.

How the Company Makes Money

Nongfu Spring makes money primarily through the sale of bottled water and other beverage products. The company's revenue model is centered around its extensive distribution network that spans across China, ensuring its products are available in a wide range of retail outlets, including supermarkets, convenience stores, and online platforms. Key revenue streams include the sale of its flagship bottled water products, which are sourced from natural springs, as well as its expanding portfolio of tea, juice, and functional drinks. Nongfu Spring's market success is bolstered by its strong brand recognition and consumer trust in the quality of its products. Significant partnerships with retailers and e-commerce platforms also contribute to its earnings by enhancing distribution efficiency and market reach.

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

Summary

Nongfu Spring Co., Ltd. exhibits strong revenue growth and profitability, with a robust gross profit margin and solid EBIT/EBITDA margins. The balance sheet is stable with a healthy debt-to-equity ratio, but increasing debt levels are a concern. Cash flows are positive, though some data for 2024 is missing.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.90B	42.67B	33.24B	29.70B	22.88B
Gross Profit	24.92B	25.41B	19.10B	17.66B	13.51B
EBITDA	16.30B	18.42B	11.80B	10.96B	8.55B
Net Income	12.12B	12.08B	8.50B	7.16B	5.28B
Balance Sheet
Total Assets	53.16B	49.14B	39.25B	32.90B	25.86B
Cash, Cash Equivalents and Short-Term Investments	12.25B	24.23B	15.21B	14.99B	9.12B
Total Debt	3.75B	3.21B	2.52B	2.59B	2.47B
Total Liabilities	20.87B	20.57B	15.17B	12.15B	10.37B
Stockholders Equity	32.29B	28.57B	24.08B	20.74B	15.49B
Cash Flow
Free Cash Flow	4.62B	12.44B	7.69B	8.91B	6.15B
Operating Cash Flow	11.02B	17.30B	12.04B	11.40B	8.43B
Investing Cash Flow	-4.50B	-14.28B	-9.43B	-5.32B	-4.66B
Financing Cash Flow	-8.06B	-7.02B	-5.37B	-1.89B	1.72B

Nongfu Spring Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 40.15 is above the 20-day moving average (MA) of 39.44, above the 50-day MA of 38.22, and above the 200-day MA of 34.08, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 76.32 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
1837	79 Outperform	HK$1.73B	8.41	12.91%	5.06%	9.63%	20.08%
9633	76 Outperform	HK$452.11B	34.39	39.94%	2.07%	-1.32%	-1.49%
0220	75 Outperform	$41.47B	20.68	13.80%	4.95%	3.98%	8.64%
1475	71 Outperform	HK$7.15B	37.03	5.15%	1.41%	3.95%	-42.81%
2175	64 Neutral	HK$1.28B	11.70	5.09%	―	-0.48%	-26.92%
Sector *	60 Neutral	HK$17.56B	11.08	0.20%	5.34%	2.68%	-48.29%

Nongfu Spring Co., Ltd. Class H Corporate Events

Nongfu Spring Co., Ltd. Announces Successful AGM and Key Appointments

Nongfu Spring Co., Ltd. announced the successful conclusion of its 2024 annual general meeting, where all proposed resolutions were approved by shareholders. Key outcomes include the approval of new board and supervisory committee members, as well as the acceptance of financial and operational reports for the year ended December 31, 2024. These developments are expected to strengthen the company’s governance and operational transparency, potentially enhancing its market position and stakeholder confidence.

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.

Nongfu Spring Updates Final Dividend Details for 2024

Nongfu Spring Co., Ltd. has announced an update to its final dividend for the year ended December 31, 2024, with a declared dividend of RMB 0.76 per share, payable in Hong Kong dollars at HKD 0.82 per share. The announcement includes details on the exchange rate and withholding tax applicable to different types of shareholders, highlighting the company’s commitment to transparency and shareholder value.

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.

Nongfu Spring Co., Ltd. Announces AGM and Strategic Resolutions

Nongfu Spring Co., Ltd. has announced its annual general meeting scheduled for May 20, 2025, to discuss various resolutions including the approval of board members, financial statements, and dividend payments. The meeting will also consider granting the board a mandate to issue new shares, reflecting the company’s strategic efforts to enhance its capital structure and operational capabilities.

Nongfu Spring Nominates New Independent Director

Nongfu Spring Co., Ltd. has announced the nomination of Mr. Gu Zhaoyang as an independent non-executive director, following the resignation of Mr. Stanley Yi Chang. Mr. Gu brings extensive experience in accountancy and corporate governance, having held various academic and directorial roles in prominent institutions and companies. His appointment is expected to strengthen the company’s board with his expertise and is subject to shareholder approval at the upcoming Annual General Meeting.