Eastroc Beverage(SH:605499) Ping An Securities·2024-10-30 04:12Investment Rating - The report maintains a "Recommended" rating for the company, expecting strong performance in the next six months [3][7][13]. Core Insights - The company has shown significant growth in revenue and net profit, with a year-on-year revenue increase of 45.34% and a net profit increase of 63.53% for the first three quarters of 2024 [4][5]. - The gross margin and net margin have improved, with a gross margin of 45.05% and a net margin of 21.56% for the first three quarters of 2024, attributed to lower raw material costs [5][6]. - The company is focusing on expanding its product matrix and enhancing its market presence through a nationwide strategy, with notable growth in its core product and new offerings [6][7]. Financial Performance Summary - Revenue projections for 2024 to 2026 are as follows: 2024E at 16,199 million, 2025E at 20,591 million, and 2026E at 25,333 million, reflecting a compound annual growth rate [3][11]. - Net profit projections for the same period are: 2024E at 3,238 million, 2025E at 4,258 million, and 2026E at 5,341 million, indicating strong profitability growth [3][11]. - The company’s gross margin is expected to improve from 43.1% in 2023A to 46.8% in 2026E, while net margin is projected to rise from 18.1% to 21.1% over the same period [11][12]. Market Position and Strategy - The company is enhancing its distribution network and focusing on channel penetration, with significant revenue growth in regions like North China and Southwest China [6][7]. - The company aims to strengthen its market share in the energy drink sector while diversifying its product offerings to meet consumer demands [6][7].