Eastroc Beverage(SH:605499) Huachuang Securities·2024-10-30 03:23Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 250 CNY, compared to the current price of 220.68 CNY [1]. Core Insights - The company reported strong revenue growth of 45.34% year-on-year for the first three quarters of 2024, reaching 12.558 billion CNY, with a net profit increase of 63.53% to 2.707 billion CNY [1]. - The company's product expansion is robust, with significant contributions from new products, particularly the "补水啦" line, which saw a 300% increase in revenue [1]. - The gross margin improved significantly to 45.8%, up 4.3 percentage points year-on-year, driven by lower raw material costs and scale effects [1]. - The company is expected to maintain high growth rates in the beverage sector, with projections for revenue to reach 16.126 billion CNY in 2024, representing a 43.2% increase [2]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 4.685 billion CNY, a 47.29% increase year-on-year, and a net profit of 977 million CNY, up 78.42% [1]. - The gross profit margin for Q3 2024 was reported at 45.8%, reflecting improved cost management and operational efficiency [1][2]. Product and Market Expansion - The company has successfully launched several new products, contributing to a significant increase in sales across various regions, with the highest growth observed in East and Central China [1]. - The "补水啦" product line is expected to reach an annual revenue of approximately 1.5 billion CNY, indicating strong market acceptance and demand [1]. Future Outlook - The company is projected to continue its growth trajectory, with revenue forecasts of 20.682 billion CNY for 2025 and 24.974 billion CNY for 2026, maintaining a strong growth rate [2]. - The report highlights the potential for further market penetration and brand strengthening, particularly in non-traditional channels such as schools and sports venues [1].