Eastroc Beverage(SH:605499) Huaan Securities·2024-04-14 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported strong financial performance in 2023, with Q4 revenue of 2.62 billion (up 41%) and net profit of 380 million (up 40%) [1] - The company anticipates a year of significant new product launches, with the flagship product, Dongpeng Special Drink, achieving over 10 billion in revenue [1][2] - The company is accelerating its national expansion, with revenue growth in various regions significantly outpacing overall growth [1] Financial Performance Summary - For the full year 2023, the company achieved revenue of 11.26 billion (up 32%) and net profit of 2.04 billion (up 42%) [1] - The gross margin for 2023 was 43.1%, with a slight increase expected in the coming years [2][4] - The company plans to distribute a dividend of 2.5 per 10 shares, resulting in a payout ratio of 49% [1] Revenue and Profit Forecast - The company is projected to achieve revenues of 14.45 billion, 18.07 billion, and 22.26 billion for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 28.3%, 25.0%, and 23.2% [2] - Net profit is expected to reach 2.65 billion, 3.40 billion, and 4.25 billion for the same years, with growth rates of 30.1%, 28.2%, and 24.8% respectively [2] Market Position and Product Development - Dongpeng Special Drink accounted for 92% of total revenue in 2023, with a market share increase to 43% in volume and 31% in revenue [1] - The company launched new products, including "Brewed Water," which generated over 400 million in revenue, contributing to a 187% increase in other beverage sales [1] - The company is expanding its distribution channels, with active terminals increasing by 13.4% year-on-year [1]