Eastroc Beverage(SH:605499) Xin Lang Cai Jing·2026-01-27 14:37Core Viewpoint - Dongpeng Beverage is set to launch its H-share IPO on the Hong Kong Stock Exchange, aiming to raise approximately HKD 10.1 billion, marking it as a significant player in the beverage industry and the third "A+H" listed company this year [1][2][3]. IPO Details - The company plans to issue 40,889,900 H-shares, with a maximum offering price of HKD 248 per share, which could place it among the top fundraising IPOs in the consumer sector in recent years [2][3][5]. - The IPO is scheduled to begin trading on February 3, 2026, under the stock code 09980 [1][3]. Company Performance - Dongpeng Beverage is recognized as the leading functional beverage company in China, with a projected revenue of RMB 20.76 billion to RMB 21.12 billion for 2025, reflecting a growth rate of 31.07% to 33.34% compared to the previous year [3][18]. - The company has maintained a leading position in the functional beverage market, with a market share increase from 15.0% in 2021 to an expected 26.3% by 2024 [4][19]. Investor Confidence - The IPO has attracted significant interest from cornerstone investors, including Qatar Investment Authority, Temasek, and BlackRock, with total subscriptions amounting to USD 640 million, representing 49.2% of the total fundraising [6][8][24]. - The pricing strategy reflects a lower than average discount compared to other A-H shares in the consumer sector, indicating a favorable valuation for potential investors [5][20]. Growth Strategy - Dongpeng Beverage aims to expand its international presence, particularly in Southeast Asia, where the energy drink market is projected to reach USD 4.2 billion in 2024, with a compound annual growth rate of 6.2% [13][30]. - Approximately 8% of the net proceeds from the IPO will be allocated to establishing supply chain infrastructure in overseas markets, while 12% will focus on expanding international business and exploring investment opportunities [30][29]. Market Challenges - Despite its growth, Dongpeng Beverage faces challenges, including a high dependency on its flagship product, Dongpeng Special Drink, which contributes 85% of its revenue [9][26]. - The company’s performance in emerging beverage categories like coffee and tea remains limited, raising questions about the sustainability of its growth trajectory [9][12].