Eastroc Beverage(SH:605499) China Post Securities·2024-10-10 08:30Investment Rating - The investment rating for the company is "Buy" and is maintained [4][6]. Core Views - The company has exceeded revenue and profit expectations for multiple consecutive quarters, with a strong growth trend expected to continue into Q3 2024. The anticipated revenue for the first three quarters of 2024 is between 12.4 billion to 12.72 billion yuan, representing a year-on-year growth of 43.5% to 47.21% [4][5]. - The company is actively expanding its brand marketing and strengthening its terminal channel construction, which is expected to drive further growth in sales and market presence [5][6]. - The cost side is benefiting from a significant decrease in domestic sugar prices, which is expected to enhance gross margins. The company is also increasing marketing expenditures to support sales activities, which may lead to a rise in expense ratios but is anticipated to result in profits exceeding expectations [5][6]. Financial Projections - Revenue projections for 2024-2026 have been revised upwards to 15.979 billion, 20.475 billion, and 25.469 billion yuan, respectively, with year-on-year growth rates of 41.87%, 28.14%, and 24.39% [6][7]. - The forecast for net profit attributable to the parent company for the same period has been adjusted to 3.233 billion, 4.350 billion, and 5.662 billion yuan, reflecting year-on-year growth rates of 58.52%, 34.52%, and 30.18% [6][7]. - The current price-to-earnings (P/E) ratios are projected to be 34, 25, and 19 times for 2024, 2025, and 2026, respectively, indicating a favorable valuation relative to the expected high growth in earnings [6][7].