Eastroc Beverage(SH:605499) Huachuang Securities·2025-04-16 02:33Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [1][25]. Core Insights - The company reported a strong performance in Q1 2025, achieving revenue of 4.848 billion yuan, a year-on-year increase of 39.23%, and a net profit of 980 million yuan, up 47.62% year-on-year [8][9]. - The company continues to expand its network rapidly, with new products being actively promoted, contributing to sales growth [8]. - The gross margin improved to 44.5%, up 1.7 percentage points year-on-year, benefiting from lower raw material costs and economies of scale [8]. - The company is expected to maintain high growth momentum throughout the year, with new product launches likely to catalyze sales during the peak consumption season [8]. Financial Summary - Total revenue projections for the company are as follows: 15.839 billion yuan in 2024, 20.271 billion yuan in 2025, 24.501 billion yuan in 2026, and 28.184 billion yuan in 2027, with respective year-on-year growth rates of 40.6%, 28.0%, 20.9%, and 15.0% [3][14]. - Net profit forecasts are 3.326 billion yuan for 2024, 4.519 billion yuan for 2025, 5.611 billion yuan for 2026, and 6.617 billion yuan for 2027, with growth rates of 63.1%, 35.9%, 24.2%, and 17.9% respectively [3][14]. - The earnings per share (EPS) are projected to be 6.40 yuan in 2024, 8.69 yuan in 2025, 10.79 yuan in 2026, and 12.72 yuan in 2027 [3][14]. - The target price for the company's stock is set at 304 yuan, with the current price at 267.58 yuan [4].