Eastroc Beverage(SH:605499) Guotai Junan Securities·2024-10-10 04:36Investment Rating - The investment rating for Dongpeng Beverage (605499) is maintained at "Buy" [4][10]. Core Views - The company has exceeded performance expectations, driven by new product launches and channel expansion, leading to an upward revision of EPS forecasts for 2024-2026 to 6.31, 8.20, and 10.48 CNY, representing year-on-year growth of 60.8%, 30.1%, and 27.8% respectively [10]. - The target price has been raised to 249.50 CNY from the previous 206.78 CNY, reflecting a PEG ratio of 1.01X based on comparisons with competitors like Nongfu Spring and Yanjing Beer [10]. - The company expects to achieve revenue of 12.4 to 12.72 billion CNY for the first three quarters of 2024, a year-on-year increase of 43.5% to 47.2%, and a net profit of 2.6 to 2.73 billion CNY, up 57% to 65% [10]. Financial Summary - Revenue for 2022 was 8.505 billion CNY, with projections of 11.263 billion CNY for 2023 and 16.233 billion CNY for 2024, indicating a growth rate of 32.4% and 44.1% respectively [11]. - The net profit attributable to the parent company is expected to rise from 1.441 billion CNY in 2022 to 2.040 billion CNY in 2023 and 3.279 billion CNY in 2024, reflecting growth rates of 41.6% and 60.8% [11]. - The company’s net profit margin is projected to improve to a range of 19.2% to 20.6% in Q3 2024, an increase of 2 to 3.4 percentage points year-on-year [10]. Market Position and Strategy - Dongpeng Beverage is capitalizing on the growing demand for energy drinks and electrolyte water, aligning with consumer trends towards health and wellness [10]. - The company is enhancing its market share through aggressive channel management and product placement strategies, particularly during peak seasons [10]. - The introduction of the "Buli La" product line is expected to become a significant growth driver, appealing to both energy drink consumers and those seeking hydration solutions [10].