Citigroup released a research report stating that NONGFU SPRING (09633) demonstrated stronger revenue growth and net profit margin compared to its peers, indicating its profits were less impacted by the surge in PET costs. The bank maintained its target price at HK$58.5 and a "Buy" rating, viewing NONGFU SPRING as its top pick within the China consumer staples sector. The company's net profit last year increased by 31% year-on-year, surpassing market expectations by 6%, primarily driven by higher-than-anticipated revenue growth. The report noted that sales growth across all of NONGFU SPRING's product categories accelerated in the second half of 2023 compared to the first half, which was a positive surprise. Due to positive operating leverage, the year-on-year growth in EBIT accelerated from 29% in the first half to 48% in the second half, while net profit growth also accelerated from 22% in the first half to 40% in the second half.