Eastroc Beverage(SH:605499) HUAXI Securities·2024-07-11 01:02Investment Rating - The investment rating for the company is "Buy" [2]. Core Insights - The company has exceeded market expectations with its Q2 performance forecast, projecting a revenue increase of 44.0%-48.0% year-on-year and a net profit increase of 44.4%-56.1% for the first half of 2024 [3][4]. - The growth is attributed to the ongoing national channel network expansion and enhanced channel management, which have improved product visibility and sales performance [4]. - The company's digital transformation has enabled efficient traffic conversion at nearly 4 million terminal points, supporting brand recognition and product awareness [5]. Summary by Sections Performance Forecast - For H1 2024, the company expects revenue between 7.86 billion to 8.08 billion yuan, with a net profit forecast of 1.6 billion to 1.73 billion yuan [3]. - For Q2 2024, revenue is projected to be between 4.38 billion to 4.6 billion yuan, with net profit expected to be between 940 million to 1.07 billion yuan [3]. Growth Drivers - The company's revenue growth is driven by its national strategy and refined channel management, which have bolstered operational capabilities and product exposure [4]. - The company is also diversifying its product categories to create new growth points, enhancing its revenue potential [4]. Digital Strategy - The digital empowerment of nearly 4 million terminal points has led to high-efficiency traffic conversion, maximizing consumer reach and reducing educational costs [5]. - The company has utilized digital tools to identify high-potential outlets and enhance product display, contributing to increased sales [5]. Financial Projections - The revenue forecasts for 2024-2026 have been adjusted upwards, with expected revenues of 14.67 billion, 18.54 billion, and 22.82 billion yuan respectively [6]. - The net profit forecasts for the same period have also been revised to 2.78 billion, 3.65 billion, and 4.68 billion yuan respectively [6]. - The earnings per share (EPS) estimates have been increased to 6.96, 9.12, and 11.71 yuan for 2024, 2025, and 2026 respectively [6].