Eastroc Beverage(SH:605499) Orient Securities·2024-10-30 09:51Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 265.29 CNY, based on a calculated equity value of 1379.5 billion CNY [2][4][6]. Core Insights - The company reported strong revenue growth of 45.3% year-over-year, achieving 12.56 billion CNY in revenue for the first three quarters of 2024, and a net profit of 2.71 billion CNY, reflecting a year-over-year increase of 63.5% [1][6]. - The product lines, particularly the Dongpeng energy drink and the new "Bushuila" product, have driven significant growth, with the latter showing an impressive revenue increase of 292.1% year-over-year [1]. - The gross profit margin has been steadily increasing, reaching 45.1% in Q3 2024, up 2.5 percentage points year-over-year, indicating improved profitability due to scale effects and reduced raw material costs [1][6]. Financial Performance Summary - For 2024, the company forecasts revenue of 15.96 billion CNY, with a year-over-year growth rate of 41.7%. The net profit is expected to reach 3.21 billion CNY, reflecting a growth rate of 57.4% [3][6]. - The gross margin is projected to improve to 45.2% in 2024, with a net profit margin of 20.1% [3][6]. - The company has shown a consistent increase in earnings per share, projected at 6.17 CNY for 2024, compared to 3.92 CNY in 2023 [3][6]. Market Position and Strategy - The company is expanding its national presence and building a comprehensive beverage platform, focusing on energy drinks, electrolyte drinks, tea, coffee, and pre-mixed alcoholic beverages [1][6]. - The sales network is being optimized, with a notable increase in the number of distributors across various regions, contributing to robust sales growth [1][6]. - The company aims to enhance its market share in the functional beverage and electrolyte water segments through continued product development and channel expansion [1].