Citigroup expects the market to respond positively to the news that Nongfu Spring (09633) major shareholder will increase its shareholding after the market opens today.
According to the report released by Citigroup today, Nongfu Spring (09633) remains a 'buy' rating with a target price of HKD 60.15.
The report states that the company's major shareholder, Zhong Shanshan, announced yesterday (9th) that he will purchase no more than 2 billion yuan worth of company's stocks from the open market within six months through his holding company, Yangshengtang.
The founder and major shareholder of the company's plan to increase its stake in the company demonstrates its confidence in the company's development prospects and recognizes its inherent value. The bank expects the market to respond positively to this news after the market opens today.