Eastroc Beverage(SH:605499) Guolian Securities·2024-09-02 05:07Investment Rating - The investment rating for the company is "Buy" [7][11]. Core Insights - The company continues to show strong performance with a projected revenue growth of 40.10% in 2024, 27.97% in 2025, and 21.42% in 2026, alongside net profit growth of 42.84%, 30.53%, and 24.79% respectively [3][11]. - The company is transitioning from a leader in energy drinks to a broader beverage platform, supported by strong performance in its second growth curve [3][11]. Financial Performance - In H1 2024, the company achieved a revenue of 78.73 billion yuan, a year-on-year increase of 44.19%, and a net profit of 17.31 billion yuan, up 56.17% [11]. - Q2 2024 revenue reached 43.91 billion yuan, reflecting a 47.88% year-on-year growth, with net profit increasing by 74.62% to 10.67 billion yuan [11]. - The gross margin for Q2 2024 was 46.05%, an increase of 3.30 percentage points year-on-year, attributed to a decrease in raw material costs [11]. Regional Expansion - The company is making steady progress in national expansion, with significant growth in regions such as North China, East China, and Southwest China [11]. - In Q2 2024, revenue from various regions showed strong growth, with North China and East China growing by 102.19% and 58.12% respectively [11]. Product Performance - The company’s functional drinks segment is accelerating, with the "Brewed Water" product showing remarkable growth, achieving a revenue of 6.30 billion yuan in Q2 2024, a year-on-year increase of 193.83% [11]. - The sales volume of the company's flagship energy drink increased by 32.96%, while the average price remained stable [11]. Future Projections - The company is expected to achieve revenues of 157.79 billion yuan in 2024, 201.93 billion yuan in 2025, and 245.18 billion yuan in 2026, with a compound annual growth rate (CAGR) of 32.51% [3][11]. - The projected price-to-earnings (PE) ratios for 2024, 2025, and 2026 are 31, 24, and 19 respectively [3][11].