Nongfu Spring Shares Surge After Posting Earnings Growth in 2025
By Jason Chau
Shares of Chinese beverage company Nongfu Spring surged after it reported a significant jump in its earnings for 2025.
Nongfu's shares climbed as much as 12% in Hong Kong on Wednesday morning before pulling back slightly. The stock, which was last up 8.9%, is on track for its largest single-day gain since November 2024.
The gains came after the company on Tuesday reported a net profit increase of more than 30% for 2025 and a revenue rise of almost 23%.
Nongfu Spring, China's largest bottled water producer, attributed its profit growth to lower procurement costs for raw materials such as sugar and packaging items like cartons. Improved price discipline across its distribution network also supported profitability, it said.
Revenue growth in its packaged drinking water and tea beverage segments drove the increase in topline, the earnings report showed.
The company said it would recommend distributing a cash dividend of 0.99 yuan per share at its coming annual general meeting.
Citi said that Nongfu remains its top pick in China's food and beverage sector.
"Nongfu's stronger topline growth and higher net profit margin versus beverage peers means that its profit is less vulnerable to the spike of polyethylene terephthalate cost," Citi analysts Xiaopo Wei and Vincent Young said.
The packaged water bottler's stock, trading at a high premium, is supported by its long operating track record, solid business model and strong brands, they added.
Write to Jason Chau at jason.chau@wsj.com
(END) Dow Jones Newswires
March 24, 2026 23:54 ET (03:54 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
4 Stocks to Buy Before They Rise Further
2 Undervalued Stocks to Buy Before They Rebound
The 10 Best Companies to Invest in Now
The 10 Best Dividend Stocks
United States