Eastroc Beverage(605499) 太平洋证券·2025-04-17 14:44Investment Rating - The report maintains a "Buy" rating for the company with a target price of 315 RMB, compared to the last closing price of 275 RMB [1][8]. Core Insights - The company achieved a strong start in Q1 2025, with revenue reaching 4.85 billion RMB, a year-on-year increase of 39.2%, and a net profit of 980 million RMB, up 47.6% year-on-year [4][5]. - The growth is driven by strong performance in the special beverage segment and the continued success of the "Beverage" product line, which saw significant year-on-year increases [5][7]. - The company is focusing on national expansion and has made progress in its platform-based growth strategy, with plans for international market entry, particularly in Southeast Asia and the Middle East [7][8]. Financial Performance - In Q1 2025, the company reported a gross margin of 44.5%, an increase of 1.7 percentage points year-on-year, attributed to economies of scale and declining raw material costs [6]. - The net profit margin also improved, reaching 20.2%, up 1.1 percentage points year-on-year, indicating a positive trend in profitability [6]. - The company aims for revenue and profit growth of no less than 20% for 2025, with a strong focus on expanding its product offerings and market reach [7][8]. Future Projections - Revenue projections for 2025-2027 are estimated at 21 billion RMB, 26.2 billion RMB, and 31.3 billion RMB, representing year-on-year growth rates of 32%, 25%, and 19% respectively [8][9]. - Net profit projections for the same period are 4.6 billion RMB, 5.9 billion RMB, and 7 billion RMB, with growth rates of 37%, 29%, and 20% respectively [8][9]. - The company is expected to maintain a strong performance relative to the market, with a projected PE ratio of 31, 24, and 20 for the years 2025, 2026, and 2027 [8][9].