Eastroc Beverage(605499) 国泰君安·2024-09-01 12:46Investment Rating - Maintains an "Overweight" rating with a target price of 271.18 RMB [3][5] Core Views - The company's performance exceeded expectations, with significant growth in new products and a well-established national expansion strategy [3][12] - Revenue for H1 2024 reached 7.9 billion RMB, a 44% YoY increase, while net profit attributable to shareholders grew by 56% YoY to 1.7 billion RMB [3][12] - The company's "1+6" product diversification strategy is progressing steadily, with non-energy beverage revenue increasing by 6.94 percentage points to 12.81% of total revenue [3][12] - National market revenue outside Guangdong and Guangxi regions surged, contributing 65.95% of total revenue, up 9.43 percentage points YoY [3][12] - The number of terminal outlets exceeded 3.6 million, a 9.09% increase from the end of 2023 [3][12] Financial Performance - Gross margin for H1 2024 reached 44.6%, up 1.5 percentage points YoY, with Q2 gross margin at 46.05%, up 3.3 percentage points YoY [13] - Net profit margin for H1 2024 was 21.98%, up 1.69 percentage points YoY, with Q2 net profit margin at 24.29%, up 3.72 percentage points YoY [13] - Sales, management, R&D, and financial expense ratios decreased by 0.25, 0.55, 0.09, and 1.23 percentage points, respectively [13] Product and Channel Development - The energy drink category, led by Dongpeng Special Drink, grew by 33.5% YoY, driven by increased consumer demand for anti-fatigue products [12] - The new product "Hydration Drink" (补水啦) saw explosive growth, with revenue increasing by 281.1% YoY, becoming the company's second growth curve [12][13] - The company's channel strength continues to improve, with expanded terminal outlets and enhanced frozen product layouts during the summer peak season [13] Market and Valuation - The company's market capitalization stands at 91.178 billion RMB, with a total of 400 million shares outstanding [6] - The stock price range over the past 52 weeks was 162.67-239.88 RMB [6] - The company's P/E ratio for 2024E is 32.25, with an expected EPS of 7.07 RMB [4][5] Future Outlook - The company is expected to maintain strong growth, with projected revenue of 15.523 billion RMB in 2024, a 37.8% YoY increase [4] - Net profit attributable to shareholders is forecasted to reach 2.828 billion RMB in 2024, a 38.6% YoY increase [4] - The company's ROE is expected to rise to 36.0% in 2024, up from 32.3% in 2023 [4]