On July 30th, Guolonghui reported that China International Capital Corporation has lowered its target price for Nongfu Spring (9633.HK) by 22.3%, from HKD 48 to HKD 37.3. The bank has reduced its profit forecast for the company in 2024 and 2025 by 3% and 1%, respectively, reflecting disappointing performance in the packaging water market in the first half of the 2024 fiscal year, which has suppressed the strong momentum of tea sales. It maintains a rating of outperform. The bank pointed out that Nongfu Spring's performance in the first half of the 2024 fiscal year was worse than expected, and it lowered its packaging water revenue forecast for the company in the first half of the year from a growth of 9% to a decline of 17%, given the sharp decline in sales due to online boycotts in April and May. The scale of the boycott was stronger than expected, causing the company to offer more discounts, leading to a decline in the average selling price. Although tea sales have increased, they are not enough to offset this, so the bank has revised its sales growth forecast for the company in the first half of the 2024 fiscal year from 14% to 8% due to continued discounts, leading to a revision of its gross margin forecast for the company from 60.2% to 59.9%.