Eastroc Beverage(SH:605499) Xin Lang Cai Jing·2026-01-29 10:43Core Viewpoint - Dongpeng Beverage is set to launch its global offering on January 26, with a pricing date of January 30 and a listing on the Hong Kong Stock Exchange on February 3. The maximum issue price is set at HKD 248 per share, with an expected fundraising scale of approximately HKD 101-117 billion. The pricing reflects a discount of 15.5% compared to the A-share closing price, which raises questions about the valuation's rationality given the company's strong cash reserves and the necessity of financing [1][14]. Pricing and Valuation - The maximum issue price of Dongpeng Beverage is 15.5% lower than the A-share closing price of RMB 262.50 per share, which is relatively low compared to similar projects and consumer stocks that typically see discounts of 20%-40% [2][15]. - The pricing strategy does not set a lower limit, allowing flexibility for adjustments based on market feedback, which could help align with current market conditions [3][16]. - The company's valuation is under scrutiny, as the maximum issue price corresponds to a P/E ratio that exceeds the average for the Hong Kong beverage industry, raising concerns about whether the high growth can justify such a premium [12][24]. Financial Performance - Dongpeng Beverage has shown impressive revenue growth, with projected revenues of RMB 208-211 billion for 2025, reflecting a year-on-year increase of 31.1%-33.3%. The net profit is expected to reach RMB 43.4-45.9 billion, with a growth rate of 30.5%-38.0% [8][20]. - The company has maintained a strong dividend policy, with a total of RMB 66 billion in dividends distributed from 2021 to 2025, and a payout ratio consistently above 50% [8][21]. Institutional Investment - The IPO has attracted a prestigious cornerstone investor lineup, including 15 institutions that collectively invested USD 640 million, representing 49.2% of the offering. Notable participants include Qatar Investment Authority and Temasek, marking significant firsts for these investors in the A to H share IPO space [5][18]. - The cornerstone investment reflects confidence in Dongpeng Beverage's growth trajectory and dividend returns, which have been appealing to institutional investors [6][18]. Market Concerns - Despite strong financial performance, the necessity of the IPO has raised questions, particularly given the company's substantial cash reserves of RMB 57.2 billion and other financial assets totaling RMB 94.5 billion [10][22]. - The company's history of significant shareholder reductions and the large dividends flowing to the founding family have also sparked discussions about the motivations behind the IPO [10][22][23].