Eastroc Beverage(SH:605499) Changjiang Securities·2024-04-18 08:02Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Insights - In 2023, the company achieved total revenue of 11.263 billion yuan, representing a year-on-year increase of 32.42%. The net profit attributable to shareholders was 2.04 billion yuan, up 41.6%, while the net profit after deducting non-recurring items was 1.87 billion yuan, an increase of 38.29% [5][6] - For Q4 2023, the company reported total revenue of 2.622 billion yuan, a growth of 40.88%, with a net profit of 384 million yuan, up 39.69% [5][6] - The company is focusing on expanding its second curve products, with significant growth in electrolyte water and plans to launch new products such as unsweetened tea and pre-mixed drinks in 2024 [5][6] Revenue Breakdown - Revenue by product category in 2023: - Dongpeng Special Drink: 10.336 billion yuan (+26.48%) - Other beverages: 914 million yuan (+186.65%) [5] - Revenue by region in 2023: - Guangdong: 3.761 billion yuan (+12.14%) - East China: 1.516 billion yuan (+48.41%) - Central China: 1.4 billion yuan (+32.84%) - Guangxi: 983 million yuan (+9.82%) - Southwest: 1.115 billion yuan (+64.71%) - North China: 1.01 billion yuan (+64.83%) [5] Profitability Analysis - In 2023, the net profit margin increased by 1.17 percentage points to 18.11%, and the gross profit margin rose by 0.75 percentage points to 43.07% [6] - For Q4 2023, the net profit margin decreased slightly by 0.12 percentage points to 14.65%, while the gross profit margin increased by 0.52 percentage points to 44.9% [6] Future Outlook - The company aims for a revenue and profit growth target of 20% for 2024, with expectations of achieving net profits of 2.616 billion yuan and 3.277 billion yuan in 2024 and 2025, respectively [6]