Eastroc Beverage(SH:605499) Dongguan Securities·2025-10-27 08:56Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the stock will outperform the market index by more than 15% over the next six months [4][7]. Core Insights - The company reported strong performance in Q3 2025, with total revenue reaching 16.844 billion yuan, a year-on-year increase of 34.13%, and net profit attributable to shareholders of 3.761 billion yuan, up 38.91% [4]. - The second product line, represented by the "Brewed Water" category, has shown significant growth, with core energy drink revenue increasing by 19.4% year-on-year [4]. - The company has improved its net profit margin in Q3 2025, achieving a net profit margin of 22.68%, an increase of 1.83 percentage points year-on-year [4]. Summary by Sections Financial Performance - For Q3 2025, the company achieved total revenue of 6.107 billion yuan, a 30.36% increase year-on-year, and net profit of 1.386 billion yuan, up 41.91% [4]. - The company’s core products, particularly energy drinks, generated revenue of 12.563 billion yuan in the first three quarters of 2025, reflecting a 19.4% growth [4]. Market Expansion - The company is actively deepening its market penetration across various regions, with notable revenue growth in areas such as Guangdong (13.5% increase) and other regions like East China and Southwest China, which saw increases of 32.8% and 48.9% respectively [4]. Profitability Metrics - The gross margin for Q3 2025 was reported at 45.21%, a slight decrease of 0.60 percentage points year-on-year, while the selling expense ratio decreased by 2.60 percentage points to 15.26% [4]. - The company’s projected earnings per share for 2025 and 2026 are 8.81 yuan and 11.06 yuan, respectively, with corresponding PE ratios of 34 and 27 [4][5].