Eastroc Beverage(SH:605499) SINOLINK SECURITIES·2025-07-13 03:22Investment Rating - The report maintains a "Buy" rating for the company, with expected profits for 2025, 2026, and 2027 projected at 46.1 billion, 58.5 billion, and 73.3 billion RMB respectively, reflecting year-on-year growth rates of 39%, 27%, and 25% [4]. Core Insights - The company is expected to achieve revenue of 106.3-108.4 billion RMB in the first half of 2025, representing a year-on-year increase of 35.0% to 37.7%. The net profit attributable to shareholders is projected to be 23.1-24.5 billion RMB, with a year-on-year growth of 33.5% to 41.6% [2]. - The second quarter of 2025 is anticipated to see revenue of 57.8-59.9 billion RMB, a year-on-year increase of 31.7% to 36.5%, and a net profit of 13.3-14.7 billion RMB, reflecting a year-on-year growth of 24.6% to 37.8% [2]. - The company is focusing on diversifying its product offerings and expanding its market presence, with strong growth expected from its core beverage categories and new product lines [3]. Summary by Sections Revenue and Profit Forecast - The company is projected to achieve significant revenue growth, with estimates of 11.263 billion RMB in 2023, 15.839 billion RMB in 2024, and 21.132 billion RMB in 2025, reflecting growth rates of 32.42%, 40.63%, and 33.42% respectively [7]. - The net profit attributable to shareholders is expected to grow from 2.040 billion RMB in 2023 to 4.612 billion RMB in 2025, with growth rates of 41.60% and 38.62% for the respective years [7]. Profitability Metrics - The report indicates that the net profit margin for the second quarter of 2025 is expected to be 23.8%, a slight decrease of 0.50 percentage points year-on-year, while the non-deductible net profit margin is projected at 22.6%, down 2.04 percentage points year-on-year [3]. - The company is expected to maintain strong profitability due to cost advantages and effective channel management, with a focus on enhancing product visibility and driving sales at the retail level [3]. Market Position and Strategy - The company is actively pursuing a national expansion strategy, leveraging refined channel management to enhance operational capabilities and increase product exposure [3]. - The report highlights the company's commitment to innovation and product diversification, which is expected to unlock new revenue streams and enhance overall market competitiveness [3].