On September 1, NONGFU SPRING fell 3.11% in regular trading to HK$41.68, with turnover of HK$132 million. The decline reflects profit-taking following the company's better-than-expected H1 results disclosed on August 25, compounded by market concerns over rising cost pressures in the second half.

The H1 report showed revenue of RMB 29.718 billion (+16.0% YoY) and net profit of RMB 8.887 billion (+16.6% YoY), both exceeding expectations. Tea beverages emerged as the largest revenue category for the first time, generating RMB 13.122 billion (+30.1% YoY) and overtaking packaged water. However, industry data revealed nationwide packaged water sales volume fell 4.9% YoY with sales value down 7.3% in H1, underscoring structural headwinds in the core water segment.

While multiple brokerages including Goldman Sachs, CLSA, and Huatai maintained positive ratings, analysts flagged H2 margin risk from surging PET resin costs — which rose over 40% between January and April — as the company's low-price inventory buffer is largely exhausted. Goldman Sachs projected H2 recurring net profit growth of approximately 6%, significantly slower than H1.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)