Eastroc Beverage(SH:605499) Huajin Securities·2024-09-26 07:30Investment Rating - The report maintains a "Buy - B" rating for the company [1][2]. Core Viewpoints - The company is positioned as a leading energy drink brand in China, with a strong focus on multi-category development and a robust national expansion strategy. The sales volume of its flagship product, Dongpeng Special Drink, surpassed 10 billion yuan in 2023, marking it as the top-selling energy drink in the country [1][32]. - The energy drink market is expected to continue growing, with a projected market size nearing 100 billion yuan in the medium term, driven by expanding consumer demographics and product offerings [1][2][55]. Company Overview - The company, founded in 1987, has evolved from a local beverage manufacturer to a national leader in energy drinks, launching various sub-brands to diversify its product portfolio. The company has successfully implemented a nationwide expansion strategy since 2013 and went public in 2021 [1][32]. - The company has achieved a compound annual growth rate (CAGR) of 30% in revenue from 2018 to 2023, with net profit CAGR reaching 57%, indicating strong financial performance and growth potential [36][40]. Industry Analysis - The energy drink market has shown a compound annual growth rate of 11.8% over the past decade, significantly outpacing the overall soft drink market. The market size reached 576 billion yuan in 2023, with an 8.1% year-on-year growth [1][55]. - The competitive landscape has shifted from a single dominant player to a more diversified market with multiple strong brands, providing opportunities for growth for domestic brands like Dongpeng [1][55]. Financial Projections - The company is expected to achieve revenues of 152.55 billion yuan, 196.66 billion yuan, and 247.64 billion yuan for the years 2024 to 2026, respectively, with year-on-year growth rates of 35.4%, 28.9%, and 25.9% [2][3]. - The projected net profit for the same period is 29.13 billion yuan, 38.24 billion yuan, and 48.27 billion yuan, with growth rates of 42.8%, 31.3%, and 26.2% [2][3].