Eastroc Beverage(SH:605499) Changjiang Securities·2024-09-17 02:11Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company reported a total revenue of 7.873 billion yuan for H1 2024, representing a year-on-year increase of 44.19%, and a net profit attributable to shareholders of 1.731 billion yuan, up 56.17% year-on-year [5] - The company is benefiting from a strong single product momentum and significant improvement in the contribution of its second product line, with a focus on high cost-performance products and network expansion [6] - The company is in a period of network expansion and product high momentum, with an expected EPS of 7.15, 8.90, and 11.09 yuan for 2024, 2025, and 2026 respectively, corresponding to PE ratios of 32, 26, and 21 times [6] Summary by Sections Revenue and Profit Growth - In H1 2024, the company achieved total revenue of 7.873 billion yuan, a 44.19% increase year-on-year; net profit attributable to shareholders was 1.731 billion yuan, a 56.17% increase year-on-year [5] - For Q2 2024, total revenue was 4.391 billion yuan, up 47.88% year-on-year, and net profit was 1.067 billion yuan, a 74.62% increase year-on-year [5] Product Performance - The company's flagship product, Dongpeng Special Drink, generated revenue of 6.855 billion yuan in H1 2024, a 33.5% increase year-on-year, with Q2 revenue reaching 3.754 billion yuan, up 36.4% year-on-year [6] - The new product line "Brew Water" saw revenue of 476 million yuan in H1 2024, a staggering 281% increase year-on-year [6] Cost Management and Profitability - The company benefited from low PET prices and sugar costs, leading to significant cost advantages; despite increased advertising and promotional spending, the sales expense ratio decreased [6] - In H1 2024, the net profit margin increased by 1.69 percentage points to 21.98%, and the gross margin improved by 1.5 percentage points to 44.6% [6] Future Outlook - The company is expected to continue its growth trajectory with enhanced channel capabilities and product offerings, with a mid-term dividend payout ratio of 58% and a stock bonus of 3 shares for every 10 shares held [6] - The projected EPS for the next three years indicates a strong growth outlook, with corresponding PE ratios suggesting favorable valuation [6]