Eastroc Beverage(SH:605499) Tai Ping Yang·2024-10-31 09:00Investment Rating - The report maintains a "Buy" rating for Dongpeng Beverage with a target price of 284.62 CNY, compared to the last closing price of 220.68 CNY [1]. Core Insights - Dongpeng Beverage's Q3 performance shows continued high growth, with revenue reaching 12.558 billion CNY for the first three quarters of 2024, representing a year-on-year increase of 45.34%. The net profit attributable to shareholders was 2.707 billion CNY, up 63.53% year-on-year [1]. - The company benefits from an expanding consumer base for energy drinks and has successfully captured market share through high cost-performance products, leading to revenue growth that exceeded expectations [1]. - Q3 revenue was 4.685 billion CNY, a year-on-year increase of 47.29%, with net profit attributable to shareholders at 977 million CNY, up 78.42% year-on-year [1]. Financial Summary - Revenue projections for Dongpeng Beverage are as follows: 2024E at 15.795 billion CNY, 2025E at 20.076 billion CNY, and 2026E at 24.968 billion CNY, with growth rates of 40.24%, 27.11%, and 24.37% respectively [3]. - The net profit attributable to shareholders is projected to be 3.002 billion CNY in 2024E, 3.893 billion CNY in 2025E, and 4.980 billion CNY in 2026E, with growth rates of 47.19%, 29.68%, and 27.89% respectively [3]. - The report indicates a stable gross profit margin, with Q3 gross margin increasing by 4.3 percentage points to 45.8% due to rapid sales growth and favorable raw material prices [1]. Market Expansion - Dongpeng Beverage is accelerating its national expansion, with significant revenue growth observed across various regions, including Guangdong, East China, and Southwest China, with year-on-year increases of 30%, 44%, and 52% respectively [1]. - The company is enhancing its market presence by increasing the number of retail outlets and promoting new products, which is expected to contribute to continued revenue growth [1].