Eastroc Beverage(SH:605499) Huachuang Securities·2026-02-02 03:34Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][19]. Core Insights - The company has signed a cooperation agreement with Rich Stream, a subsidiary of the influential Sanlin Group, to expand into the Indonesian market with a total investment of $300 million, which will be executed in six phases [7]. - The company plans to list its H shares on February 3, with a maximum issuance of 47.02 million shares at an upper price limit of 248 HKD per share [7]. - The Indonesian market presents significant growth potential, with low per capita consumption of energy drinks compared to other Southeast Asian countries, indicating a substantial opportunity for market penetration [7]. - The partnership with Sanlin Group will leverage its extensive distribution network in Indonesia, which includes over 750,000 sales points and a convenience store brand covering all provinces [7]. - The H share issuance is expected to dilute shares by 9.0% before issuance and 8.3% after, which is in line with market expectations, and the raised funds will support domestic capacity expansion and overseas market development [7]. - The company anticipates a revenue growth of approximately 25% in the current year, driven by strong sales momentum and new product launches, with a target price set at 340 RMB [7]. Financial Summary - Projected total revenue for 2024 is 15,839 million RMB, with a year-on-year growth rate of 40.6%, increasing to 30,621 million RMB by 2027 [3][8]. - The net profit attributable to the parent company is expected to reach 3,326 million RMB in 2024, growing at a rate of 63.1%, and is projected to be 6,860 million RMB by 2027 [3][8]. - Earnings per share (EPS) are forecasted to be 6.40 RMB in 2024, increasing to 13.19 RMB by 2027, with a price-to-earnings (P/E) ratio of 39 in 2024, decreasing to 19 by 2027 [3][8].