Eastroc Beverage(SH:605499) CHINA DRAGON SECURITIES·2025-03-11 08:49Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has established a diversified product matrix with a focus on becoming a leading comprehensive beverage group, enhancing brand value and market competitiveness [6] - The flagship product, Dongpeng Special Drink, has shown steady growth, capturing a 47.9% market share in China's energy drink sector, an increase of 4.9 percentage points year-on-year [6] - The company reported a significant increase in revenue and profit for 2024, with total revenue reaching 15.839 billion yuan, a year-on-year growth of 40.63%, and net profit attributable to shareholders of 3.327 billion yuan, up 63.09% [4] Financial Performance - In 2024, the company achieved a gross margin of 44.81%, an increase of 1.74 percentage points year-on-year, primarily due to lower raw material costs [6] - The net profit margin for 2024 was 21.00%, reflecting a year-on-year increase of 2.89 percentage points [6] - The company’s operating cash flow for 2024 was 5.789 billion yuan, a year-on-year increase of 76.44% [4] Market Position and Growth Strategy - The company is focusing on expanding its product categories, including electrolyte drinks, sugar-free tea, and large-packaged beverages, to optimize its product structure [9] - The second growth curve, "Dongpeng Water," has entered the "billion-level product" category, with a sales volume market share of 6.7%, up 5.0 percentage points year-on-year [6] - The company plans to deepen its national and omnichannel strategies while exploring international markets, including setting up a company in Indonesia to meet local demand for high-quality soft drinks [7] Future Projections - Revenue projections for 2025, 2026, and 2027 are 20.456 billion yuan, 25.393 billion yuan, and 30.189 billion yuan, respectively, with year-on-year growth rates of 29.15%, 24.13%, and 18.89% [9] - Net profit projections for the same years are 4.427 billion yuan, 5.657 billion yuan, and 6.901 billion yuan, with growth rates of 33.06%, 27.80%, and 21.99% [9] - The company is expected to maintain a strong return on equity (ROE) of 40.92% in 2025 [9]