According to the intelligence financial APP, Citigroup released a research report stating that it has a "buy" rating on Nongfu Spring (09633) with a target price of HKD 60.15.

The bank expects that Nongfu Spring will achieve high single-digit growth in net income in the first half of this year, which is far better than market expectations. It is expected that the sales of packaged water will be weak as expected, but the sales of tea drinks are expected to increase significantly by about 50% on a year-on-year basis, and the sales of fruit juice in the first half of the year are expected to achieve a high double-digit year-on-year growth.

The report pointed out that Zhong Shanshan, the founder and chairman of Nongfu Spring, rarely accepted an exclusive interview with CCTV and believed that the interview marked the government's recognition of Nongfu Spring's business, which will also enhance the confidence of dealers in the company's future. It is expected that after the company announces its first-half results, Zhong Shanshan will accelerate the repurchase of Nongfu Spring stocks.