In "Major Banks," China International Capital Corporation: EASTROC BEVERAGE's fourth-quarter revenue meets expectations, profit slightly below expectations

CICC's research report indicates that EASTROC BEVERAGE (09980.HK) forecasts a revenue growth of 31% to 33% year-on-year for 2025, with net profit attributable to the parent company increasing by 31% to 38%. For the fourth quarter alone, revenue is expected to rise by 19% to 30% year-on-year, while net profit attributable to the parent company is expected to decline by 6.5% to increase by 34% year-on-year. The firm believes that the fourth quarter revenue meets market expectations, but profits are slightly below market expectations, mainly due to investments in freezers.

Based on the freezer investments in 2025 and overseas expenses in 2026, the firm has lowered its earnings forecasts for 2025 and 2026 by 2.2% and 6%, to RMB 4.47 billion and RMB 5.38 billion, respectively, and introduced a profit forecast for 2027 of RMB 6.27 billion; it has reduced the target price for EASTROC BEVERAGE (605499.SH) A shares by 6% to RMB 330, maintaining the "outperform industry" rating