On July 24, Guolonghui mentioned that according to a report from Zhongjin, Nongfu Spring is predicted to have high unit revenue growth in the first half of the year, primarily driven by good performance in tea and juice. There is also high unit growth in net income compared to the same period last year, mainly due to improvement in product structure offsetting the unfavorable impact of packaged water, which kept the net profit margin stable. The revenue performance meets expectations, and the profit performance may slightly exceed market expectations, mainly due to the profit margin improvement from the better-than-expected improvement in the product structure. Zhongjin believes that the sales of packaged water may be under short-term pressure, but may be repaired in the long-term. The competitiveness of the beverage industry continues to strengthen, and the profit forecast for this year and next year is expected to be reduced by 7% and 10%, respectively. Considering the downward market valuation, the target price is lowered by 18% to HKD 45, corresponding to the estimated P/E ratio of 35.7 times and 32.3 times for this year and next year respectively, and maintaining the "outperform industry" rating.