Eastroc Beverage (605499 CH/ 9980 HK) A/H: Buy/Buy: Competitive headwinds fully priced in

研报英文原文证据摘录

Eastroc Beverage (605499 CH/ 9980 HK) A/H: Buy/Buy: Competitive headwinds fully priced in

2 July 2026

Equity Research Report

Equities Eastroc Beverage Beverages

(605499 CH/ 9980 HK)

A/H: Buy/Buy: Competitive headwinds fully priced in China

◆ Cost pressures have eased materially, largely alleviating

A: MAINTAIN BUY

concerns over earnings compression

◆ Market concerns over intensifying competition appear fully TARGET PRICE (CNY) PREVIOUS TARGET (CNY)

priced in; high temperatures are expected to boost end demand 150.00 182.31

◆ Maintain Buy ratings on A/H-shares; cut TPs to

SHARE PRICE (CNY) UPSIDE/DOWNSIDE

RMB150.00/HKD148.00 from RMB182.31/HKD187.00

123.43 +21.5%

(as of 30 Jun 2026)

Fading cost concerns: PET prices have declined significantly since mid-June, with

the drop of crude oil prices following the easing of the Middle East conflict. According

H: MAINTAIN BUYto Wind, domestic PET prices have fallen from a peak of RMB9,550 per tonne in early

May 2026 to RMB7,100 per tonne, and the y-o-y PET price increase has narrowed

from 67% in early May to 16%, with further deceleration anticipated. Therefore, we TARGET PRICE (HKD) PREVIOUS TARGET (HKD)

remain bullish on the profit elasticity of beverage brands as cost pressures abate. Our 148.00 187.00calculations indicate 10ppt y-o-y growth deceleration in PET price vs our base-case

scenario would lift the company’s 2026e net profit by 4%. Although the company has

SHARE PRICE (HKD) UPSIDE/DOWNSIDElocked in nearly its full-year 2026 PET requirements at low prices, the market

remained concerned that sustained high prices would pressure 2027e profitability, 107.20 +38.1%

thereby affecting the stability of performance and valuation. We now believe that (as of 30 Jun 2026)

these concerns have been substantially alleviated.