Eastroc (H): Revenue expectation reset but growth still well above peers; reiterate Buy

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Eastroc (H): Revenue expectation reset but growth still well above peers; reiterate Buy

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Eastroc (H)

Revenue expectation reset but growth still

well above peers; reiterate Buy

Reiterate Rating: BUY | PO: 175.00 HKD | Price: 115.00 HKD

Lower EPS & PO cut; rising focus on shareholder returns 18 June 2026

We lower our 2026/27E EPS 5%/9% and PO 16% to HK$175 for Eastroc-H (see Exhibit 1

and below for further details on estimate and PO changes). Unfavorable weather in recent Equity

months and intensifying competition have weighed on the beverage sector, driving an

industry-wide slowdown in 2026 YTD, and we now expect Eastroc to deliver 15%+ Key Changes

revenue growth in 2026, vs. prior 20%+ guide. However, we maintain our Buy rating on

(CNY) Previous Current

Eastroc-H. 1) Long-term growth outlook remains intact, with its geographic and

Price Obj. HK$208.00 HK$175.00

category expansion underpinned by growing brand recognition, quality and unique

2026E EPS 7.33 6.97

products at a competitive price, and strong channel capability. 2) We expect category-

2027E EPS 8.04 7.32

level GPM expansion and broadly stable group-level GPM/NPM in 2026, as input cost

2028E EPS 9.41 8.40

lock-ins for PET and sugar (together >50% of COGS) should offset mix dilution and

enhance earnings visibility relative to peers. Recent developments in the Middle East

Jack Chen >>

could also ease cost concerns for 2027. 3) We see Eastroc’s growing focus on Research Analyst

shareholder returns, with a RMB1-2bn share buyback program (launched in April) and the Merrill Lynch (Hong Kong)

+852 3508 8776

chairman’s planned HK$100-200mn increase in H-share holdings (announced in May). ruofan.chen@bofa.com

Still multiple revenue measures ahead ChenResearchLuo,AnalystCFA >>

1) Energy drinks.