Beverage Sector Performing Well Recently; Nongfu Spring and Dongpeng Beverage Continued to Rise Today; Continued Recommendation

English summary

Dongpeng Beverage: The market worries about earnings slowdown, but we believe the company is still a high-quality target in the beverage industry. There is still penetration room in specialty drinks and electrolyte categories, and the company's new product promotion is fast under high channel efficiency. We estimate 26/27 revenue +16%/+12% YoY, profit +17%/+12% to RMB 5.17/5.79 billion. Currently, Hong Kong-listed shares trade at only 15.5/13.8x 26/27 valuation, leaving ample room for valuation recovery. Nongfu Spring: We are bullish on packaged water share concentrating to the leader, with strong sugar-free tea growth momentum. We estimate 26/27 revenue +13%/+12%, profit +10%/+13% to RMB 17.5/19.7 billion. Current valuation is only 25/23x, still leaving room for valuation recovery. Welcome to communicate.