China’s first energy drink stock Eastroc Beverage (Group) Co.Ltd(605499) (605499. SH) handed over its first annual report since listing.
On February 15, Eastroc Beverage (Group) Co.Ltd(605499) released the annual performance express of 2021, which showed that the total operating revenue of the company in 2021 was about 6.978 billion yuan, a year-on-year increase of 40.72%; The net profit attributable to shareholders of listed companies was 1.193 billion yuan, a year-on-year increase of 46.90%.
This performance express shows that the performance is the median value of the performance forecast range, which has been expected by the market.
Compared with the third quarter of last year, Eastroc Beverage (Group) Co.Ltd(605499) had an operating revenue of 1.418 billion yuan and a net profit attributable to the parent company of 197 million yuan in the fourth quarter. The net profit of the company in the first three quarters exceeded 320 million yuan. In the off-season of energy beverage consumption, it is reasonable for the performance of the fourth quarter to decline month on month. The same is true for the comparable fourth quarter of 2020.
For the reasons for the performance growth, Eastroc Beverage (Group) Co.Ltd(605499) said that during the reporting period, the company continued to optimize the product structure and customer structure, explore the traditional channels of the national market, further improve the overall market rate and coverage of products, and build a “energy +” product line to meet differentiated needs.
However, in the past year, Eastroc Beverage (Group) Co.Ltd(605499) has made slow progress in breaking through its dependence on a single product.
Eastroc Beverage (Group) Co.Ltd(605499) is a company originated in Guangdong and landed on the main board of Shanghai stock market in May 2021. Dongpeng special beverage is a big single product of the company, which has contributed more than 90% of the company’s revenue for a long time.
From 2018 to 2020, Dongpeng special drink accounted for 94.99%, 95.11% and 93.88% of the revenue of Eastroc Beverage (Group) Co.Ltd(605499) respectively. In the first half of 2021, energy drinks exceeded 3.5 billion yuan, accounting for 96.59% of the main business income; The revenue of non energy drinks such as citrus and lemon tea is only 125 million yuan, accounting for 3.41% of the main business revenue.
Eastroc Beverage (Group) Co.Ltd(605499) there are also new products such as Dongpeng Jialu, Dongpeng 0 sugar, Dongpeng big coffee and “Daneng” focusing on female consumer groups. These new products were first sold in the markets of Guangdong and Guangxi through offline channels and have not been promoted nationwide for the time being.
Among them, Dongpeng Jiaxi and 0 sugar special drink achieved sales revenue of 31.1392 million yuan and 30.742 million yuan respectively, which is far from the sales of core single products such as 500ml gold bottles.
in the era of sugar free drinks, Eastroc Beverage (Group) Co.Ltd(605499) has high hopes for 0 sugar special drinks. during January 2022, Eastroc Beverage (Group) Co.Ltd(605499) received research from about 20 institutions Wuxi Online Offline Communication Information Technology Co.Ltd(300959) , including Goldman Sachs, Gaohua, CICC securities, noan fund, Ping An fund, etc.
During this investor research and exchange, Eastroc Beverage (Group) Co.Ltd(605499) board secretary Liu Lihua said, “(0 sugar special drink) has brought hundreds of thousands of new customers. It is a product with strong development potential. The current development momentum is higher than expected. Dozens of first and second tier cities will be selected for promotion in 2022.”
Whether the promotion effect can be as expected still needs to be tested by the market.
the Guangdong beverage company also relies heavily on the Guangdong region, which improved last year.
After the listing of Eastroc Beverage (Group) Co.Ltd(605499) , it is planning to develop into a national company. Secretary Liu Lihua said that by the end of June 2021, the company’s products had covered more than 1.79 million effective terminal outlets; In the first three quarters of 2021, the company has more than 2000 dealers.
In terms of the proportion of income, the proportion of income in Guangdong has decreased year by year, and the proportion of national and direct income has increased year by year. From 2018 to 2020, Eastroc Beverage (Group) Co.Ltd(605499) Guangdong regional sales revenue accounted for 61.10%, 60.12% and 55.74% of the company’s main business revenue respectively. In the first half of 2021, Guangdong achieved a sales revenue of 1.655 billion yuan, accounting for 45.05%.
however, the development outside Guangdong Province is not balanced. In 2021, Eastroc Beverage (Group) Co.Ltd(605499) exceeded the sales target in central and South China, while the North China market was lower than expected and did not achieve the sales target.
In the first three quarters, the East China market increased by 72% year-on-year, the southwest market increased by 62.14% year-on-year, and the central China market increased by 43.28% year-on-year.
In this regard, Liu Lihua said that the sales system of North China Business Division has a perfect space compared with other regions. At the same time, it is also related to consumers’ drinking habits. The company has also adjusted its personnel structure in 2022 to integrate and improve resource efficiency, hoping to achieve a better effect in the later stage.
The production base was built accordingly. At present Eastroc Beverage (Group) Co.Ltd(605499) seven production bases have been established, including Huapeng, zengpeng, Guanpeng, guipeng, Yupeng, Huipeng and Haifeng, and new production bases are planned to be established in Changsha and Quzhou.
Similarly, Eastroc Beverage (Group) Co.Ltd(605499) has repeatedly stressed that in Guangdong, the company’s advantageous region, it has not reached the “ceiling” of sales, and there is room for development and improvement.
On the one hand, the regional market development in Guangdong Province is unbalanced, and the sales contribution of the Pearl River Delta will be greater than that of Western and northern Guangdong; On the other hand, a catering area was set up in Guangdong in 2022 to open up catering channels. In addition to promoting Dongpeng special drink, non energy drinks such as citrus lemon tea, Chenpi special drink and water will also be promoted; Third, Guangdong is also increasing the penetration of products, accelerating the progress of channel sinking, and focusing on improving channel coverage and coverage quality.
Shortly after its listing last year, Eastroc Beverage (Group) Co.Ltd(605499) was scrambled by institutions, and its share price was fried. It once rushed up to 285.70 yuan / share, and its market value once exceeded 100 billion yuan. Without a better story, Eastroc Beverage (Group) Co.Ltd(605499) share price fluctuated and fell, and the company’s latest closing price was 163.66 yuan / share. The latest market value evaporated about 48 billion yuan compared with the peak period.
