Equity Analyst

Steve Zhou, CFA

Over 13 years of professional experience covering mainly Asian consumer companies in sell-side and buy-side.

Nongfu Spring (9633 HK):  Within Striking Distance

Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/nongfu-spring-co-ltd" target="_blank" data-smartkarma-citation="entities:28955:1" rel="noopener">Nongfu Spring (9633 HK)</a> announced a set of strong 2023 results last week, with 2H23 net profit up 62% yoy and sales up 33% yoy.  </li>
<li>The best performing category in 2023 has been tea beverage products (30% of sales), which grew 83% yoy for the year and 105% yoy in 2H23, picking up speed.</li>
<li>Nongfu Spring is trading at 33x 2024 earnings, which I believe is attractive. </li>
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Nongfu Spring (9633 HK) announced a set of strong 2023 results last week, with 2H23 net profit up 62% yoy and sales up 33% yoy.  
The best performing category in 2023 has been tea beverage products (30% of sales), which grew 83% yoy for the year and 105% yoy in 2H23, picking up speed.
Nongfu Spring is trading at 33x 2024 earnings, which I believe is attractive. 


Nongfu Spring (9633 HK):  Strong Results Overshadowed By Short Term Negative Publicitiy