Nongfu Spring - H JPM 2026 Global China Summit takeaways

Research evidence excerpt

Nongfu Spring - H JPM 2026 Global China Summit takeaways

J P M O R G A N Asia Pacific Equity Research

27 May 2026

Nongfu Spring - H Overweight

9633.HK, 9633 HK

JPM 2026 Global China Summit takeaways Price (26 May 26):HK$44.04

Price Target (Dec-26):HK$55.00

We met with Nongfu management at our Global China Summit in Shanghai last Consumer

ACweek. Nongfu is one of the few quality names that we think could generate alpha Jessie Xu

in a challenging market with cost inflation headwinds. Nongfu is our China (852) 2800-8590

beverage sector top pick and one of our China Consumer top picks. Key takeaways jessie.j.xu@jpmorgan.com

are below. J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

Sylvia Hu

• 1Q business update: Category performance was in line with expectations; (86-21)sylvia.hu@jpmorgan.com6106-6284

unsweetened tea outgrew other categories, and beverages grew faster SAC Registration Number: S1730526010001

than water. Tracking the full-year revenue guidance of double-digit J.P. Morgan Securities (China) Company Limited

growth.

• Input cost pressure (PET): PET represents ~30% of COGS. PET prices

rose to ~RMB 9k/ton in early May and recently eased to RMB 8k+/ton in

as the oil/geopolitical risk cooled in late May; costs may further ease but

are unlikely to revert to pre-tension levels.

• Procurement and supply: PET is sourced via a mix of stockpiling / price-

lock contracts / spot buying. Supply is not expected to constrain

production, but pricing will impact costs; 1H impact was limited due to

inventory and locked pricing, while the 2H impact should be larger.

• Pricing and marketing stance: Low likelihood of price hikes. The

company will not cut prices or reduce marketing because of raw material