Eastroc Beverage(SH:605499) Xinda Securities·2024-09-02 14:30Investment Rating - The investment rating for the company is "Buy" [2][4]. Core Views - The company achieved a revenue of 7.873 billion yuan in the first half of 2024, representing a year-on-year increase of 44.19%, with a net profit attributable to shareholders of 1.731 billion yuan, up 56.17% year-on-year [1]. - The company is focusing on deepening its market presence in Guangdong while accelerating its national expansion, with Q2 2024 revenue reaching 4.391 billion yuan, a year-on-year increase of 47.89% [2]. - The product line expansion is showing significant results, with "Dongpeng Water" revenue growing by 281.13% year-on-year to 476 million yuan in H1 2024 [2][3]. Summary by Sections Financial Performance - In Q2 2024, the company’s revenue from the Guangdong region increased by 14.99% to 1.193 billion yuan, while revenue from the Guangxi region rose by 19.17% to 276 million yuan [2]. - The company’s gross profit margin improved by 3.31 percentage points to 46.05% in Q2 2024, with net profit attributable to shareholders increasing by 74.66% to 1.067 billion yuan [3]. Earnings Forecast - The company is expected to maintain good growth in the energy drink market nationwide, with projected EPS for 2024-2026 at 7.55, 9.37, and 11.16 yuan, respectively [4]. - The corresponding P/E ratios for these years are estimated at 30, 24, and 20 times based on the closing price of 227.94 yuan per share on August 30, 2024 [4]. Market Expansion - The company is optimizing its distribution system and enhancing its business team outside Guangdong, which is expected to contribute to revenue growth [4]. - The company’s other beverage revenue surged by 193.84% year-on-year to 630 million yuan, accounting for 14.37% of total revenue, an increase of 7.14 percentage points year-on-year [2].