Eastroc Beverage(SH:605499) Shanghai Securities·2024-04-23 13:30Investment Rating - The investment rating for the company is "Buy (Maintain)" as of April 23, 2024 [2]. Core Views - The company reported a strong performance in Q1 2024, achieving a revenue of 34.82 billion yuan, representing a year-on-year growth of 39.80%. The net profit attributable to shareholders was 6.64 billion yuan, up 33.51% year-on-year [2]. - The core product, Dongpeng Energy Drink, continued to show high growth, with Q1 2024 revenue reaching 31.01 billion yuan, a year-on-year increase of 30.11%. Other beverage categories, including electrolyte drinks, tea drinks, and ready-to-drink coffee, also saw significant sales growth [2]. - The company is actively expanding its national presence while solidifying its market in Guangdong, with a focus on diversifying its product matrix beyond energy drinks [2]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 34.82 billion yuan, a 39.80% increase year-on-year. The net profit attributable to shareholders was 6.64 billion yuan, reflecting a 33.51% growth [2]. - The gross profit margin for Q1 2024 was 42.77%, a slight decrease of 0.76 percentage points year-on-year, primarily due to production cost impacts [2]. - The overall sales expense ratio improved slightly, decreasing by 0.02 percentage points to 19.09% [2]. Revenue Growth - The company is projected to achieve revenues of 141.81 billion yuan in 2024, with a year-on-year growth rate of 25.91%. By 2026, revenues are expected to reach 208.71 billion yuan, with a growth rate of 20.07% [3]. - The net profit attributable to shareholders is forecasted to be 26.29 billion yuan in 2024, with a growth rate of 28.88%, and is expected to reach 41.46 billion yuan by 2026, with a growth rate of 24.83% [3]. Market Expansion - The company is accelerating its national expansion efforts, with significant revenue growth in regions outside its home market of Guangdong. For instance, revenue from East China, Central China, and North China markets grew by 48.05%, 54.45%, and 69.14% year-on-year, respectively [2]. - The company is also exploring new sales channels, including online and direct sales, which generated revenues of 0.67 billion yuan and 3.46 billion yuan in Q1 2024, representing year-on-year increases of 100.26% and 76.38%, respectively [2].