Eastroc Beverage(SH:605499) INDUSTRIAL SECURITIES·2024-07-14 00:01Investment Rating - The report maintains an "Accumulate" rating for the company [3][9]. Core Views - The company is expected to achieve significant revenue growth in the coming years, with projected revenues of 148.86 billion, 179.42 billion, and 211.73 billion yuan for 2024, 2025, and 2026 respectively, representing year-on-year growth rates of 32.17%, 20.53%, and 18.01% [3][4]. - The net profit attributable to the parent company is forecasted to be 28.11 billion, 34.44 billion, and 41.34 billion yuan for the same years, with year-on-year growth rates of 37.81%, 22.53%, and 20.01% [3][4]. - The company's earnings per share (EPS) are projected to be 7.03, 8.61, and 10.33 yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 29.95, 24.44, and 20.37 [3][4]. Financial Performance Summary - The company reported a significant acceleration in revenue growth in Q2 2024, with expected revenues between 78.60 billion and 80.80 billion yuan, reflecting a year-on-year increase of 43.95% to 47.98% [6]. - The net profit for the same period is anticipated to be between 16.00 billion and 17.30 billion yuan, indicating a year-on-year growth of 44.39% to 56.12% [6]. - The gross profit margin is expected to improve, with a projected net profit margin of 20.1% to 24.1% for Q2 2024, an increase of 2.0 to 6.0 percentage points year-on-year, driven by improved raw material costs and enhanced efficiency in expense allocation [5][6]. Market Strategy and Growth Potential - The company is actively pursuing a national expansion strategy, increasing its market presence outside its home province, and enhancing channel management to boost product visibility and sales [6]. - New product development is showing promise, with successful launches in categories such as electrolyte water, sugar-free tea, and coffee, which are expected to contribute to future growth [6]. - The company aims to increase its market share in its core business while leveraging economies of scale to enhance profitability [6].