Eastroc Beverage(SH:605499) Huaxin Securities·2024-08-31 10:30Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company continues to demonstrate strong performance with significant revenue growth and enhanced profitability, driven by effective channel expansion and product diversification [2][5] - The company is successfully implementing a multi-category strategy, aiming to become a comprehensive beverage group, with a focus on increasing market share in the energy drink sector and rapid growth in new products like electrolyte water [5] Summary by Sections Financial Performance - For H1 2024, total revenue reached 78.73 billion yuan, a year-on-year increase of 44.19%, with net profit attributable to shareholders at 17.31 billion yuan, up 56.17% [2] - The gross margin for H1 2024 was 44.60%, an increase of 1.50 percentage points year-on-year, while the net margin was 21.98%, up 1.69 percentage points [2] - Operating cash flow for H1 2024 was 22.67 billion yuan, a 74.68% increase year-on-year [2] Product and Market Expansion - The company reported strong sales growth across its main products, with revenue from Dongpeng Special Drink, Dongpeng Water, and other beverages reaching 68.55 billion yuan, 4.76 billion yuan, and 5.31 billion yuan respectively, reflecting year-on-year increases of 33.5%, 281.1%, and 172.2% [2][3] - The company is expanding its consumer base through product diversification, including new flavors and packaging for its water products, and targeting younger demographics with new brand initiatives [3][4] Channel Development - The company is successfully advancing its national strategy, with revenue from various regions showing significant growth, particularly in the Southwest and North China regions, with increases of 75.6% and 99.1% respectively in H1 2024 [4] - The company has strengthened its distribution network, with a total of 2,982 distributors and coverage of over 3.6 million effective terminals, reaching over 210 million unique consumers [4] Earnings Forecast - The earnings per share (EPS) for 2024-2026 are projected to be 7.37 yuan, 9.56 yuan, and 12.23 yuan respectively, with corresponding price-to-earnings (PE) ratios of 31, 24, and 19 [5]