Core Viewpoint - Eastroc Beverage is preparing to raise up to HK$10.14 billion ($1.3 billion) through a Hong Kong share offering, aiming to enhance its market value to over HK$166 billion post-listing [1] Group 1: Financial Performance - The company's revenue increased from 8.5 billion yuan in 2022 to 15.83 billion yuan in 2024, achieving a compound annual growth rate (CAGR) of 36.5% [4] - For the nine months ended September 30, 2025, revenue rose 34.1% year-on-year to 16.83 billion yuan [4] - Net profit grew from 1.44 billion yuan in 2022 to 3.32 billion yuan in 2024, representing a 52% CAGR [4] - Net profit for the nine months ended September 30, 2025, reached 3.76 billion yuan, up 38.9% year-on-year [4] Group 2: Profitability and Cash Flow - Net profit margin expanded from 16.9% in 2022 to 18.1% in 2023, reaching 21% in 2024 and further improving to 22.3% for the nine months ended September 30, 2025 [5] - Net cash flow from operating activities was 2.02 billion yuan in 2022, increasing to 3.28 billion yuan in 2023, 5.78 billion yuan in 2024, and 3.13 billion yuan for the nine months ended September 30, 2025 [5] Group 3: Business Operations and Strategy - Eastroc Beverage's portfolio includes energy and sports drinks, tea and coffee, plant-based protein drinks, and fruit juices [3] - The company operates nine production bases across China and is expanding production capacity at four existing sites while building four new bases [3] - Eastroc is recognized as China's largest maker of functional beverages, including energy and sports drinks, based on sales volume since 2021 [3] Group 4: Investment and Future Plans - The company plans to use the proceeds from the share offering to enhance production capacity, strengthen its supply chain, and invest in marketing [2] - Part of the funds will also be allocated to strengthen distribution and pursue overseas expansion, including potential investments and acquisitions [2] Group 5: Key Investors - Cornerstone investors in the offering include Qatar Investment Authority, Singapore state fund Temasek Holdings, BlackRock, and Tencent [2]

Core Viewpoint - Coca-Cola is a reliable stock known for stability and consistent dividends, but it may not provide significant capital appreciation compared to broader market indices like the S&P 500 [1][11]. Company Performance - Over the past 30 years, Coca-Cola's stock has increased nearly 320%, with a total return of almost 780% when including reinvested dividends, while the S&P 500 has soared 1,030% [2]. - A $10,000 investment in Coca-Cola in 1995 would be worth about $88,000 today, generating approximately $2,600 in annual dividends, which outpaces inflation [4]. Business Model - Coca-Cola's business model focuses on producing concentrates and syrups, allowing it to maintain cost control and generate stable cash flows [4]. - The company has diversified its product portfolio to include bottled water, teas, fruit juices, sports drinks, energy drinks, coffee, and alcoholic beverages to counter declining soda consumption [5]. Growth Metrics - From 1994 to 2024, Coca-Cola's earnings per share (EPS) grew at a compound annual growth rate (CAGR) of 5%, while its annual free cash flow (FCF) increased at a CAGR of 3% [6]. Future Outlook - Trends such as the shift towards healthier drinks and tougher regulations could impact Coca-Cola's soda business and drive acquisitions of health-oriented beverages [7]. - Coca-Cola's reliance on emerging markets for growth presents challenges, including competition from regional brands and geopolitical risks [8]. Financial Projections - If Coca-Cola maintains a 5% CAGR for EPS from 2024 to 2054, EPS could rise from $2.46 to $10.63 [9]. - Assuming a price-to-earnings ratio of 20, Coca-Cola's stock price could exceed $213 in 30 years, but significant investment would be required to achieve millionaire status [10]. Investment Perspective - Coca-Cola is viewed as a stable, safe-haven stock that may not generate millionaire-making returns but serves as a reliable dividend-generating component in a diversified portfolio [11][12].