CLSA Sets Target Price of CNY 39.2 for Nongfu Spring
CLSA issued a report stating that Nongfu Spring expects its net profit for 2020 to 2022 to fall by 3%, rise by 20% and rise by 20%, respectively. CLSA gives it an 'Outperform' rating and a target price of CNY 39.2.
According to the report, Nongfu Spring's drinking water has a market share of 20.9% in Mainland China and has a leading competitive advantage. The company's market share in the tea beverage, juice and functional beverage industries is also in the top three. And the company's product range is wide, including multiple rapidly expanding categories of brands.