- Nongfu Spring’s net income for the first half of the year was 7.62 billion yuan, beating the estimate of 7.28 billion yuan.
- The company’s revenue came in at 25.62 billion yuan, exceeding the expected 25.1 billion yuan.
- Revenue from ready-to-drink tea products was 10.09 billion yuan, ahead of the estimated 9.72 billion yuan.
- Functional drinks generated revenue of 2.90 billion yuan, surpassing the 2.7 billion yuan estimate.
- Juice beverage products revenue was 2.56 billion yuan, higher than the forecasted 2.42 billion yuan.
- Nongfu Spring achieved a gross margin of 60.3%, greater than the anticipated 59.9%.
- The company has a debt gearing ratio of 14.5%.
- Analyst ratings for Nongfu Spring consist of 29 buys, 4 holds, and 3 sells.
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A look at Nongfu Spring Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Nongfu Spring Co. Ltd., a prominent supplier of soft drinks, is poised for a positive long-term outlook based on the Smartkarma Smart Scores analysis. With impressive scores of 4 in Dividend, Growth, and Resilience, along with a perfect score of 5 in Momentum, the company demonstrates strong potential for growth and stability in the market. The company’s focus on delivering bottled mineral water, fruit juice, sports drinks, and tea drinks, as well as its convenient barreled mineral water door-to-door services, positions it well for continued success.
Investors eyeing Nongfu Spring can take confidence in the company’s solid foundation and promising future prospects. Despite scoring lower in Value at 2, the overall outlook remains optimistic, thanks to the robust scores in Dividend, Growth, Resilience, and Momentum. Nongfu Spring’s dedication to providing a diverse range of beverage products and customer-focused services underscores its potential for sustained growth in the competitive market landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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