Eastroc Beverage(SH:605499) Tianfeng Securities·2024-11-04 13:44Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating an expected return of over 20% within the next six months [6][15]. Core Insights - The company's performance continues to exceed expectations, demonstrating strong momentum. The growth in new products, particularly "Brewed Water," is significant, and the multi-category development is promising. The revenue forecast for 2024-2026 has been raised, with expected revenues of 160 billion, 209 billion, and 272 billion yuan, respectively, reflecting growth rates of 42%, 31%, and 30% [4][6]. Financial Performance Summary - For Q1-3 of 2024, the company achieved revenues and net profits of 12.558 billion and 2.707 billion yuan, respectively, representing year-on-year growth of 45.34% and 63.53%. In Q3 alone, revenues and net profits were 4.685 billion and 977 million yuan, with year-on-year increases of 47.29% and 78.42% [1]. - The gross margin improved significantly, with Q3 gross and net profit margins increasing by 4.29 and 3.64 percentage points to 45.81% and 20.85%, respectively. Sales expenses increased, reflecting a strategic investment in marketing [3]. - The company reported a net cash flow from operating activities of 768 million yuan in Q3, a 7.36% increase year-on-year, with sales collections rising by 37.62% to 5.107 billion yuan [3]. Regional Performance - The company experienced steady growth in mature regions such as Guangdong, East China, and Guangxi, while other regions saw growth rates exceeding 50%. In Q3, revenues from various regions were as follows: Guangdong (1.312 billion), East China (644 million), and others, with significant growth in Central China, Southwest, and North China [2]. Channel Development - The company is focusing on high-quality development across all channels, with a notable increase in the number and quality of distributors. In Q3, the number of distributors rose by 213 to 2,993, with an average distributor scale increasing by 36.40% to 1.5597 million yuan [2].