Eastroc Beverage(SH:605499) Nan Fang Du Shi Bao·2025-10-10 04:22Core Viewpoint - Dongpeng Beverage has restarted its IPO process in Hong Kong, aiming to enhance its capital strength and global competitiveness, while addressing challenges in the highly competitive functional beverage market [1][11]. Financial Performance - Dongpeng Beverage has shown rapid growth over the past three years, with a compound annual growth rate (CAGR) of 36.5% in revenue and a net profit growth rate of 52% [4]. - From 2022 to 2024, revenue is projected to increase from 8.5 billion RMB to 15.83 billion RMB, while net profit is expected to rise from 1.44 billion RMB to 3.33 billion RMB [5][6]. - The gross profit margin has steadily increased, reaching 44.1% in 2024 and 44.4% in the first half of 2025 [6]. Revenue Structure - Dongpeng Beverage heavily relies on its core product, Dongpeng Special Drink, which has contributed over 80% of total revenue in the past three years [8]. - Despite efforts to diversify with products like electrolyte drinks, the overall revenue contribution from these new products remains significantly lower than that of energy drinks [8][7]. Market Position and Competition - Dongpeng Beverage has maintained its position as the top seller in China's functional beverage market for four consecutive years, with market share increasing from 15% in 2021 to 26.3% in 2024 [8]. - The company faces risks associated with over-reliance on a single product category, which could limit growth potential and expose it to market saturation risks [8]. Distribution and Operational Challenges - The company has established a sales network covering over 4.2 million retail outlets, but this extensive network incurs high operational costs [9]. - Sales expenses increased by 37.09% in 2024, driven by rising employee compensation, advertising, and channel promotion costs [10]. Strategic Intentions - The IPO in Hong Kong is part of Dongpeng Beverage's strategy to enhance its international brand image and support its global expansion efforts [11]. - The company aims to maintain its core energy drink business while successfully developing a "second growth curve" through product and channel diversification [11].