Eastroc Beverage(SH:605499) Shenwan Hongyuan Securities·2025-07-27 10:14Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook based on expected performance relative to the market [1]. Core Insights - The company reported a strong performance in H1 2025, with total revenue reaching 10,737 million yuan, a year-on-year increase of 36.4%, and a net profit attributable to shareholders of 2,375 million yuan, up 37.2% [8]. - The company is expected to continue its growth trajectory, with projected net profits of 4,499 million yuan, 5,601 million yuan, and 6,753 million yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 35.2%, 24.5%, and 20.6% [8]. - The company is focusing on expanding its product lines, particularly in energy drinks and new products like "Guo Zhi Cha," which are anticipated to drive future growth [8]. Financial Data and Profit Forecast - Total revenue is projected to grow from 15,839 million yuan in 2024 to 30,856 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 20.5% [7]. - The gross profit margin is expected to improve gradually, reaching 46.1% by 2027, driven by cost efficiencies and product mix optimization [7]. - The company has a robust return on equity (ROE) forecasted at 41.3% for 2025, indicating strong profitability relative to shareholder equity [7]. Revenue Breakdown - In H1 2025, the company achieved revenues of 8,361 million yuan from energy drinks, 1,493 million yuan from electrolyte drinks, and 877 million yuan from other beverages, with significant year-on-year growth rates of 21.9%, 213.7%, and 66.2% respectively [8]. - The company has established a comprehensive distribution network with over 3,200 distributors and more than 4.2 million active retail points, enhancing its market reach [8].