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9633

Nongfu SpringSEHK:9633 Stock Report

Last Price

HK$44.20

Market Cap

HK$487.5b

7D

-1.4%

1Y

-27.4%

Updated

20 Jan, 2022

Data

Company Financials +
9633 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance5/6
Financial Health5/6
Dividends0/6

9633 Stock Overview

Nongfu Spring Co., Ltd. produces and markets packaged drinking water and beverage products primarily in Mainland China.

Rewards

Earnings are forecast to grow 12.55% per year

Earnings have grown 16.6% per year over the past 5 years

Risk Analysis

No risks detected for 9633 from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Nongfu Spring
Historical stock prices
Current Share PriceHK$44.20
52 Week HighHK$67.60
52 Week LowHK$36.50
Beta0
1 Month Change-10.16%
3 Month Change14.66%
1 Year Change-27.42%
3 Year Changen/a
5 Year Changen/a
Change since IPO33.54%

Recent News & Updates

Oct 21
We Like Nongfu Spring's (HKG:9633) Returns And Here's How They're Trending

We Like Nongfu Spring's (HKG:9633) Returns And Here's How They're Trending

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Oct 01
Statutory Profit Doesn't Reflect How Good Nongfu Spring's (HKG:9633) Earnings Are

Statutory Profit Doesn't Reflect How Good Nongfu Spring's (HKG:9633) Earnings Are

Nongfu Spring Co., Ltd.'s ( HKG:9633 ) strong earnings report was rewarded with a positive stock price move. Our...

Sep 27
Do Nongfu Spring's (HKG:9633) Earnings Warrant Your Attention?

Do Nongfu Spring's (HKG:9633) Earnings Warrant Your Attention?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

9633HK BeverageHK Market
7D-1.4%-2.1%-0.2%
1Y-27.4%-24.7%-16.2%

Return vs Industry: 9633 underperformed the Hong Kong Beverage industry which returned -24.7% over the past year.

Return vs Market: 9633 underperformed the Hong Kong Market which returned -16.2% over the past year.

Price Volatility

Is 9633's price volatile compared to industry and market?
9633 volatility
9633 Average Weekly Movement5.7%
Beverage Industry Average Movement5.7%
Market Average Movement6.7%
10% most volatile stocks in HK Market13.2%
10% least volatile stocks in HK Market3.0%

Stable Share Price: 9633 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 9633's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199620,773Shanshan Zhonghttps://www.nongfuspring.com

Nongfu Spring Co., Ltd. produces and markets packaged drinking water and beverage products primarily in Mainland China. It operates through five segments: Water Products, Functional Drinks Products, Ready-To-Drink Tea Products, Juice Beverage Products, and Other Products. The company also offers tea and coffee drink products, functional drink products, fruit juice products, plant-based yogurts, and fresh oranges and apples, as well as supply chain management.

Nongfu Spring Fundamentals Summary

How do Nongfu Spring's earnings and revenue compare to its market cap?
9633 fundamental statistics
Market CapCN¥397.04b
Earnings (TTM)CN¥6.43b
Revenue (TTM)CN¥26.51b

63.0x

P/E Ratio

15.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
9633 income statement (TTM)
RevenueCN¥26.51b
Cost of RevenueCN¥10.67b
Gross ProfitCN¥15.84b
ExpensesCN¥9.41b
EarningsCN¥6.43b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.57
Gross Margin59.75%
Net Profit Margin24.24%
Debt/Equity Ratio9.8%

How did 9633 perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

30%

Payout Ratio

Valuation

Is Nongfu Spring undervalued compared to its fair value and its price relative to the market?

63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 9633 (HK$44.2) is trading above our estimate of fair value (HK$26.53)

Significantly Below Fair Value: 9633 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 9633 is poor value based on its PE Ratio (63x) compared to the Hong Kong Beverage industry average (26.3x).

PE vs Market: 9633 is poor value based on its PE Ratio (63x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 9633 is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: 9633 is overvalued based on its PB Ratio (23x) compared to the HK Beverage industry average (0.7x).


Future Growth

How is Nongfu Spring forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 9633's forecast earnings growth (12.6% per year) is above the savings rate (1.5%).

Earnings vs Market: 9633's earnings (12.6% per year) are forecast to grow slower than the Hong Kong market (16.1% per year).

High Growth Earnings: 9633's earnings are forecast to grow, but not significantly.

Revenue vs Market: 9633's revenue (15.8% per year) is forecast to grow faster than the Hong Kong market (11.6% per year).

High Growth Revenue: 9633's revenue (15.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 9633's Return on Equity is forecast to be high in 3 years time (32.3%)


Past Performance

How has Nongfu Spring performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 9633 has high quality earnings.

Growing Profit Margin: 9633's current net profit margins (24.2%) are higher than last year (21.2%).


Past Earnings Growth Analysis

Earnings Trend: 9633's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: 9633's earnings growth over the past year (30.2%) exceeds its 5-year average (16.6% per year).

Earnings vs Industry: 9633 earnings growth over the past year (30.2%) underperformed the Beverage industry 44.2%.


Return on Equity

High ROE: 9633's Return on Equity (36.5%) is considered high.


Financial Health

How is Nongfu Spring's financial position?


Financial Position Analysis

Short Term Liabilities: 9633's short term assets (CN¥15.7B) exceed its short term liabilities (CN¥12.2B).

Long Term Liabilities: 9633's short term assets (CN¥15.7B) exceed its long term liabilities (CN¥531.2M).


Debt to Equity History and Analysis

Debt Level: 9633 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 9633's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 9633's debt is well covered by operating cash flow (611.1%).

Interest Coverage: 9633 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Nongfu Spring current dividend yield, its reliability and sustainability?

0.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 9633's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.32%).

High Dividend: 9633's dividend (0.47%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.03%).


Stability and Growth of Payments

Stable Dividend: 9633 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 9633 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 9633 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 9633's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Shanshan Zhong (67 yo)

25.33yrs

Tenure

Mr. Shanshan Zhong Founded Nongfu Spring Co., Ltd. in September 1996 and has been its Chairman of the Board and Executive Director since June 10, 2001 and the General Manager since May 5, 2005. He founded...


Leadership Team

Experienced Management: 9633's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: 9633's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nongfu Spring Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Nongfu Spring Co., Ltd.
  • Ticker: 9633
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: HK$487.534b
  • Shares outstanding: 11.25b
  • Website: https://www.nongfuspring.com

Number of Employees


Location

  • Nongfu Spring Co., Ltd.
  • No.181 Geyazhuang Road
  • Xihu District
  • Hangzhou
  • Zhejiang Province
  • 310024
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 10:07
End of Day Share Price2022/01/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.