Eastroc Beverage(SH:605499) Guotai Junan Securities·2024-10-29 21:36Investment Rating - The report maintains an "Accumulate" rating for Dongpeng Beverage (605499) [3][9] - The target price is raised to 264.10 CNY from the previous 249.50 CNY [3][9] Core Insights - The company's performance meets expectations, with significant growth in the "Bup Shui La" product line and an increasingly refined national layout [2] - For Q3 2024, the company achieved a revenue of 12.558 billion CNY, a year-on-year increase of 45.34%, and a net profit attributable to shareholders of 2.707 billion CNY, up 63.53% year-on-year [9] - The revenue for Q3 alone was 4.685 billion CNY, reflecting a 47.29% year-on-year growth, with net profit reaching 977 million CNY, a 78.42% increase year-on-year [9] - The "Bup Shui La" product line saw a remarkable year-on-year revenue growth of 300%, increasing its revenue share to 15.7% in Q3 2024 from 5.8% in Q3 2023 [9] Financial Summary - The company forecasts revenue growth from 11.263 billion CNY in 2023 to 16.233 billion CNY in 2024, representing a 44.1% increase [8] - Net profit is expected to rise from 2.040 billion CNY in 2023 to 3.279 billion CNY in 2024, marking a 60.8% increase [8] - The gross margin for Q3 2024 reached 45.81%, an increase of 4.3 percentage points year-on-year, while the net margin was 20.85%, up 3.64 percentage points year-on-year [9] - The company maintains a strong balance sheet with a net debt ratio of -43.99% and a price-to-book ratio of 16.2 [5][9] Market Position and Growth Potential - The energy drink category aligns with the fast-paced lifestyle trend, and Dongpeng is enhancing its market share through high cost-performance strategies and expanding distribution channels [9] - The "Bup Shui La" product is positioned to meet the growing health demands of consumers, particularly among physically active individuals, contributing to its rapid growth [9]