\u3000\u3000 Eastroc Beverage (Group) Co.Ltd(605499) (605499)
Event: the company issued the announcement of performance increase in 2021. In 2021, the net profit attributable to the parent company was 1.15 billion yuan to 1.25 billion yuan, a year-on-year increase of + 41.6% to 53.9%; It is estimated that the net profit attributable to the parent company in Q4 is 150 million yuan to 250 million yuan, a year-on-year increase of + 42.5% to 135.1%, slightly exceeding the market expectation.
Continue to expand new products and accelerate national expansion. 1. Energy drinks are the core products of the company, mainly including Dongpeng special drink, 0 sugar special drink and Dongpeng Jiaxi. Dongpeng special drink, the main product, scientifically matches taurine, lysine and a variety of B vitamins to form a complete anti fatigue system; At present, it has the second market share in energy drinks. Actively build an “energy +” product line to meet the needs of different consumers and consumption scenarios through differentiated new products. 2. Actively explore the national channel market and further improve the market share and coverage. Combined with the sales mode of “intensive cultivation + large circulation”, the company adopts the intensive cultivation mode in core markets such as Guangdong, Guangxi, East China and central China to enhance the channel penetration ability; Other regions adopt large circulation mode and make full use of dealer resources. Wuxi Online Offline Communication Information Technology Co.Ltd(300959) combination of promotion and continuous re purchase by consumers.
The construction of central China headquarters will improve the national layout, and the capacity bottleneck is expected to be alleviated. 1. The company has signed a project entry agreement with the Management Committee of Changsha Jinxia Economic Development Zone to invest in the construction of central China regional headquarters and production base, reduce product transportation costs and further improve the national strategic layout. 2. Production bases in South China, Chongqing and Nanning will be built. After completion, it is expected to form a production capacity of 1.1 million tons, with a production period of about 5 years. The construction of production base will gradually release production capacity, alleviate the company’s production capacity bottleneck and strengthen the scale effect; At the same time, the construction of Chongqing base will help to further meet the market demand of the central and western regions and improve the market share. 3. The company signed an investment agreement with the Management Committee of Zhejiang Quzhou Zhizao new town, and will invest 630 million yuan to build Zhejiang production base to meet the needs of the East China market.
Domestic energy beverage leaders fully benefit from the expansion of the industry. The growth rate of energy beverage leads the soft beverage industry, with a compound growth rate of about 9% in the past five years, ranking second in the soft beverage industry. With the improvement of Chinese residents’ consumption level, the expansion of energy beverage consumption groups and the improvement of consumers’ acceptance of energy drinks, China’s energy beverage track still has a lot of room for growth. Since 2018, the company has promoted 500ml gold bottled Dongpeng special drink to avoid direct competition with red bull with the advantages of high cost performance and differentiated packaging. It is more suitable for major consumer groups of energy drinks such as blue collar workers, drivers and couriers to achieve rapid and large-scale consumption. As a leading domestic energy beverage enterprise, Dongpeng will fully enjoy the bonus of capacity expansion of energy beverage industry.
Profit forecast and investment suggestions. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 1.21 billion yuan, 1.57 billion yuan and 1.96 billion yuan respectively, and the EPS will be 302 million yuan, 3.91 million yuan and 4.90 yuan respectively. The corresponding dynamic PE will be 52 times, 40 times and 32 times respectively, maintaining the “buy” rating.
Risk tip: the nationwide promotion is not as expected; Intensified market competition; Food safety risks.
