In the morning session of March 25, Hong Kong consumer leader Nongfu Spring (09633.HK) saw its stock price strengthen significantly, with intraday gains expanding to nearly 11%. As of 10:22 AM, the stock was quoted at HK$47.08, up 10.93%, with a turnover of HK$358 million. Trading volume surged, indicating strong capital inflows.

(Image Source: uSMART HK app)

Earnings Exceed Expectations, Revenue and Profit Show Synchronized High Growth

According to the latest full-year results for 2025, Nongfu Spring delivered a solid performance. The company reported total revenue of RMB 52.553 billion, up 22.5% year-on-year, surpassing the RMB 50 billion mark for the first time; gross profit reached RMB 31.808 billion, up 27.7% YoY; and net profit attributable to shareholders was RMB 15.868 billion, up 30.9% YoY.

Amid ongoing uncertainties in the pace of consumer recovery, the company achieved "dual high growth" in revenue and profit, reflecting its strengthening advantages in brand power, distribution channels, and product mix. Notably, profit growth outpaced revenue growth, indicating improving profitability quality.

Gross Margin Improvement Driven by Cost Efficiency

The core driver of enhanced profitability comes from significant cost optimization. During the reporting period, the company’s gross margin increased from 58.1% to 60.5%, up 2.4 percentage points.

This improvement was mainly due to declines in upstream raw material prices, including PET plastic, packaging cartons, and sugar. In addition, the company proactively adjusted its channel structure, controlling the proportion of e-commerce sales to stabilize end-market prices and avoid margin erosion from price competition.

The combination of cost benefits and channel optimization allowed the company to expand scale without resorting to "discount-driven volume growth," instead releasing profit elasticity.

Generous Dividend Strengthens Shareholder Returns, Boosting Market Attention

Notably, the company announced a dividend of RMB 0.99 per share, totaling approximately RMB 11.134 billion, ranking among the industry leaders in dividend size. In the current market environment, a high-dividend strategy not only demonstrates robust cash flow but also enhances its value as a "blue-chip consumer stock." For institutional investors, stable cash returns combined with earnings growth provide both defensive and offensive advantages.

Market Outlook: Growth Certainty and Valuation Recovery May Align

Looking ahead, Nongfu Spring’s investment logic is gradually evolving from "steady growth" to "profit improvement + valuation recovery." On one hand, demand for bottled water and functional beverages still has long-term growth potential; on the other hand, reduced cost uncertainty will continue to support profit release.

Overall, with high earnings growth, ample cash flow, and increased dividend payout, Nongfu Spring’s market attention is expected to continue rising, and its stock price may have further room to appreciate.

How to Buy Nongfu Spring via on uSMART

After logging into the uSMART HK app, click the “Search” button in the top-right corner of the page, enter the ticker code（09633.HK), and navigate to the details page to view transaction details and historical trends. Click the “Trade” button in the bottom-right corner, select the trade type, and submit your order after filling in the transaction conditions.

(Image Source: uSMART HK app)