- Nongfu Spring is the third largest soft drinks company in China, and the market leader in the bottled water sub-segment with a 13.6% market share.
- Competition in China's bottled water market is likely to intensify going forward, despite the existence of certain entry barriers for foreign competitors.
- Inflation could be a potential drag on Nongfu Spring's profitability in FY 2021, and market consensus numbers do not seem to have sufficiently accounted for this.
- Nongfu Spring trades at consensus forward FY 2021 and FY 2022 P/E multiples of 62.0 times and 53.2 times, respectively.
For further details see:
Nongfu Spring: Third Largest Player In China's Soft Drinks Market