Eastroc Beverage(SH:605499) Huachuang Securities·2024-10-10 04:37Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 250 CNY, compared to the current price of 210 CNY [1][2]. Core Insights - The company is expected to achieve a revenue of 12.4 to 12.72 billion CNY for Q1-Q3 2024, representing a year-on-year growth of 43.50% to 47.21%. The net profit attributable to shareholders is projected to be between 2.6 to 2.73 billion CNY, with a year-on-year increase of 57.04% to 64.89% [1][2]. - The strong sales momentum continues to support robust revenue growth, alleviating concerns about a slowdown. The revenue growth midpoint for Q3 2024 is approximately 47%, despite high base effects and capacity constraints [2]. - The company has expanded its distribution network to over 3.6 million outlets, which has laid a solid foundation for high growth. Additionally, marketing efforts, including the deployment of ice cabinets and various promotional activities, have enhanced brand strength and expanded the consumer base [2]. - The report anticipates a significant improvement in profit margins due to increased scale effects and a decrease in raw material costs, with the gross profit margin expected to rise substantially [2]. Financial Summary - For 2023, the total revenue is reported at 11.263 billion CNY, with a year-on-year growth rate of 32.4%. The net profit attributable to shareholders is 2.04 billion CNY, reflecting a growth of 41.6% [3]. - The forecast for 2024 estimates total revenue to reach 16.126 billion CNY, with a growth rate of 43.2%, and a net profit of 3.25 billion CNY, indicating a growth of 59.3% [3]. - The earnings per share (EPS) for 2024 is projected at 6.25 CNY, with a price-to-earnings (P/E) ratio of 34 [3]. Market Performance - The company has shown a strong performance compared to the market index, with a notable increase in stock price over the past year [7]. Future Outlook - The report suggests that the company is well-positioned for continued high growth, with a focus on expanding its product lines and enhancing operational capabilities. The long-term growth potential remains robust, supported by strategic investments and market positioning [2][3].