Eastroc Beverage(SH:605499) EBSCN·2024-09-01 09:31Investment Rating - The report maintains a "Buy" rating for Dongpeng Beverage (605499.SH) with a current price of 227.94 CNY [1]. Core Views - Dongpeng Beverage continues to show strong revenue growth, with a 44.2% year-on-year increase in revenue for the first half of 2024, reaching 7.873 billion CNY, and a 56.2% increase in net profit, amounting to 1.731 billion CNY [1][2]. - The company is transitioning towards becoming a comprehensive beverage group, leveraging the strong performance of its flagship product, Dongpeng Special Drink, and the rapid growth of its new product, Dongpeng Water [2]. - The company is expanding its market presence in first- and second-tier cities in China and is also looking to increase its influence in overseas markets [2]. Summary by Sections Revenue and Profit Performance - In the first half of 2024, Dongpeng Special Drink generated 6.855 billion CNY in revenue, a 33.5% increase year-on-year, while Dongpeng Water achieved 476 million CNY, marking a 281.1% increase [1]. - The revenue breakdown shows that Dongpeng Special Drink accounted for 87.2% of total revenue, while Dongpeng Water's share increased to 6.05% [1]. Product Strategy - The company is actively enhancing its product offerings, including the introduction of new products like sugar-free tea and coffee beverages, which are aimed at capturing a broader consumer base [1][2]. - The multi-category strategy has proven effective, as evidenced by the significant revenue growth in other beverage categories, which saw a 172.2% increase [1]. Market Expansion - Dongpeng Beverage's revenue from various regions in the first half of 2024 showed significant growth, with the Southwest and North China regions experiencing increases of 75.6% and 99.1%, respectively [1]. - The company is focusing on expanding its distribution network, with a notable increase in the number of active retail outlets to over 3.6 million [1]. Financial Forecasts - The report projects net profits for 2024, 2025, and 2026 to be 2.877 billion CNY, 3.720 billion CNY, and 4.439 billion CNY, respectively, reflecting an upward revision of previous estimates [2][3]. - The earnings per share (EPS) for the same years are forecasted to be 7.19 CNY, 9.30 CNY, and 11.10 CNY, with corresponding price-to-earnings (P/E) ratios of 32x, 25x, and 21x [2][3].