Eastroc Beverage(605499) 民生证券·2025-03-09 14:35Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential stock price increase of over 15% relative to the benchmark index [6][11]. Core Views - The company achieved significant growth in 2024, with revenue, net profit, and net profit after deducting non-recurring items reaching 15.84 billion, 3.33 billion, and 3.26 billion yuan respectively, representing year-on-year increases of 41%, 63%, and 74% [1]. - The company is well-positioned for continued growth in 2025, driven by strong performance in the electrolyte water segment and a robust national distribution strategy [4]. - The company has successfully expanded its product offerings and market presence, with a notable increase in market share for its flagship product, Dongpeng Special Drink, which now holds a 34.9% market share [2]. Summary by Sections Financial Performance - In Q4 2024, the company reported revenue of 3.28 billion yuan, net profit of 620 million yuan, and net profit after deducting non-recurring items of 600 million yuan, with year-on-year growth rates of 25%, 61%, and 63% respectively [1]. - The company’s revenue from energy drinks reached 13.3 billion yuan in 2024, up 28% year-on-year, while electrolyte water revenue surged by 280% to 1.5 billion yuan, increasing its share from 3% to 9% [2]. Cost and Profitability - The company experienced a 7.6% decrease in unit costs in 2024, primarily due to lower prices for raw materials such as white sugar and PET packaging, contributing to a 1.75 percentage point increase in gross margin [3]. - The company’s net profit margin improved by 4.0 percentage points year-on-year, reflecting effective cost management and operational efficiency [3]. Growth Prospects - The company is expected to maintain high growth rates in the coming years, with projected net profits of 4.45 billion, 5.63 billion, and 6.91 billion yuan for 2025, 2026, and 2027, respectively, indicating year-on-year growth rates of 33.9%, 26.4%, and 22.7% [4][5]. - The company is actively exploring international markets and diversifying its product portfolio, including the launch of new health-oriented beverages [4].