Eastroc Beverage(SH:605499) GF SECURITIES·2024-07-11 09:31Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 210.48 CNY and a target value of 253 CNY, reflecting a potential upside of over 20% [2][4]. Core Insights - The company is expected to achieve revenue of 78.6-80.8 billion CNY in the first half of 2024, representing a year-on-year growth of 44.0%-48.0%. The net profit attributable to shareholders is projected to be 16.0-17.3 billion CNY, also showing a year-on-year increase of 44.4%-56.1% [1][4]. - The second quarter of 2024 is anticipated to see accelerated growth, with revenue expected to reach 43.8-46.0 billion CNY, marking a year-on-year increase of 47.4%-54.8%. This growth is attributed to the strong performance of the core product, Dongpeng Special Drink, and the expansion of its national distribution [1][4]. - The company is expected to maintain a high net profit margin, with the net profit margin projected to increase by 2.0-6.0 percentage points to 20.1%-24.1% in Q2 2024, driven by significant scale effects and a recovery in gross margins [1][4]. Financial Projections - Revenue projections for 2024-2026 are 153.8 billion CNY, 193.3 billion CNY, and 235.5 billion CNY, reflecting year-on-year growth rates of 36.5%, 25.7%, and 21.9% respectively. Net profit is expected to reach 28.9 billion CNY, 37.0 billion CNY, and 47.3 billion CNY during the same period, with growth rates of 41.8%, 27.9%, and 27.9% respectively [1][4]. - The estimated price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are 29, 23, and 18 times, respectively, indicating a favorable valuation compared to peers [1][4].