Eastroc Beverage(SH:605499)2024-09-02 06:13Investment Rating - The report maintains an "Overweight" rating for Dongpeng Beverage, indicating a positive outlook on the company's performance and growth potential [5][6]. Core Views - Dongpeng Beverage has successfully accelerated its national expansion and is witnessing significant growth in its second growth curve, particularly with its "Brewed Water" product line [6]. - The company reported a strong financial performance for the first half of 2024, with total revenue reaching 7.873 billion yuan, a year-on-year increase of 44.2%, and a net profit attributable to shareholders of 1.731 billion yuan, up 56.2% [5][8]. - The company is transitioning from a single product focus to a multi-category platform, with its flagship energy drink, Dongpeng Special Drink, accounting for 87.19% of revenue, reflecting a decrease in reliance on a single market [6]. Financial Performance Summary - For the first half of 2024, Dongpeng Beverage achieved a gross profit margin of 44.6%, an increase of 3.3 percentage points year-on-year, driven by a decline in raw material prices [7]. - The company forecasts net profits of 3 billion yuan, 3.759 billion yuan, and 4.538 billion yuan for 2024, 2025, and 2026, respectively, representing year-on-year growth rates of 46.8%, 25.5%, and 20.7% [8][9]. - The report highlights a significant increase in the number of sales outlets, reaching 3.6 million, indicating a robust distribution network across the country [6].