Eastroc Beverage(SH:605499) Huachuang Securities·2026-02-02 04:30Investment Rating - The report maintains a "Strong Buy" rating for Dongpeng Beverage (605499) with a target price of 340 CNY [2][7]. Core Insights - Dongpeng Beverage 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 USD [7]. - The company plans to issue H shares on February 3, with a maximum issuance scale of 47.02 million shares at an upper price 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 strategic opportunity for expansion [7]. - The partnership with Sanlin Group will leverage its extensive distribution network in Indonesia, which includes over 750,000 sales points and a strong presence in the convenience store sector [7]. - The H share issuance is expected to support domestic and international expansion, including capacity upgrades and digital transformation [7]. - The report forecasts a robust growth trajectory for Dongpeng, with expected revenue growth of approximately 25% in the coming year and a net profit growth of 63.1% in 2024 [3][7]. Financial Summary - Total revenue is projected to reach 15,839 million CNY in 2024, growing to 30,621 million CNY by 2027, with a compound annual growth rate (CAGR) of 40.6% in 2024 [3][8]. - Net profit attributable to shareholders is expected to increase from 3,326 million CNY in 2024 to 6,860 million CNY in 2027, reflecting a CAGR of 63.1% [3][8]. - Earnings per share (EPS) is forecasted to rise from 6.40 CNY in 2024 to 13.19 CNY in 2027 [3][8]. - The price-to-earnings (P/E) ratio is projected to decrease from 39 times in 2024 to 19 times in 2027, indicating potential for valuation improvement [3][8].