Eastroc Beverage(605499) 招商证券·2025-04-15 14:32Investment Rating - The report maintains a "Strong Buy" rating for the company [3] Core Views - The company reported a revenue and net profit growth of 39.2% and 47.6% year-on-year for Q1 2025, driven by strong performance in both existing and new products [1][6] - The company is focusing on high-quality price-performance products, capitalizing on the trend of consumer segmentation, which has led to exceptional growth [1][6] - The company has a significant growth potential with 4 million terminal points, supported by effective sales strategies including freezer placements and digital operations [1][6] Financial Data and Valuation - Total revenue is projected to grow from 11,263 million in 2023 to 31,038 million in 2027, with a compound annual growth rate (CAGR) of 32% [2][14] - The net profit is expected to increase from 2,040 million in 2023 to 6,698 million in 2027, reflecting a CAGR of 42% [2][14] - Earnings per share (EPS) is forecasted to rise from 3.92 in 2023 to 12.88 in 2027 [2][15] - The company’s price-to-earnings (PE) ratio is projected to decrease from 68.2 in 2023 to 20.8 in 2027, indicating improving valuation [2][15] Product and Market Performance - The company’s electrolyte water segment saw a remarkable revenue increase of 261.5% year-on-year in Q1 2025, with its revenue share rising from 9.5% to 11.8% [6] - Key markets such as Southwest and North China showed strong performance, with year-on-year growth rates of 61.8% and 71.7% respectively [6] - The gross margin improved by 1.7 percentage points to 44.5% in Q1 2025, attributed to favorable cost conditions and enhanced profitability from new products [6]