Eastroc Beverage(SH:605499) Haitong Securities·2024-09-04 01:14Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a significant increase in revenue and net profit for the first half of 2024, with revenue reaching 7.873 billion yuan (up 44.19% year-on-year) and net profit at 1.731 billion yuan (up 56.17% year-on-year) [5][6] - The company is transitioning from a functional beverage focus to a comprehensive beverage group, implementing a multi-category strategy [6][8] - The "East Peng Water" product line has shown rapid growth, with revenue increasing by 281.12% year-on-year, indicating a successful second growth curve [8] Financial Performance - For the first half of 2024, the company achieved a gross profit margin increase of 1.50 percentage points due to lower raw material costs, leading to a gross profit increase of 49.20% year-on-year [5] - The company expects revenues of 15.531 billion yuan, 20.066 billion yuan, and 25.488 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 3.056 billion yuan, 4.108 billion yuan, and 5.413 billion yuan [7][11] - The earnings per share (EPS) are projected to be 7.64 yuan, 10.27 yuan, and 13.53 yuan for 2024, 2025, and 2026 respectively [11] Market Strategy - The company has expanded its sales network, reaching over 3.6 million active terminal stores nationwide, with a significant increase in revenue from both online and direct sales channels [9][10] - The marketing strategy includes high-frequency advertising and promotional activities, particularly during peak travel seasons, to enhance brand visibility [9] - The company is leveraging digitalization to improve inventory management, sales execution, and consumer engagement, which is seen as a core competitive advantage [10][11]