Broker Name: China Galaxy International Securities (Hong Kong) Co., Limited (CGSI)
Date of Report: December 16, 2025
Excerpt from CGSI report.
Report Summary
- Eastroc Beverage, China’s leading functional-drink company, is seeking a Hong Kong (HK) listing and plans to issue up to 66.446 million H-shares, representing about 11.3% of total share capital.
- The company has held the No.1 spot in China’s functional beverage market by sales volume since 2021, with its market share rising from 15% in 2021 to 26.3% in 2024.
- Functional beverages are the fastest-growing category in China’s beverage sector, with an 8.3% retail sales CAGR from 2019-2024 and projected continued strong growth through 2029.
- Eastroc is expanding internationally, with early successes in Southeast Asia and the Middle East, and is pursuing a multi-category growth strategy beyond energy drinks.
- The HK IPO proceeds will be used to enhance overseas capacity, supply chain, brand building, market expansion, and digitalization over the next 3-5 years.
- Financially, Eastroc has shown robust revenue and profit growth, with revenue expected to grow from RMB 11.3 billion in 2023 to RMB 31.3 billion by 2027, and net profit margin improving from 18% to 23%.
- Historical dual-listing precedents in the sector suggest the H-share offer price generally comes at a discount to A-shares, reflecting typical pricing arbitrage.
- The company’s strong distribution network covers over 4.2 million retail points in China and is supported by digital channel management.
Above is an excerpt from a report by China Galaxy International Securities (Hong Kong) Co., Limited. Clients of CGSI can be the first to access the full report from the CGSI website: https://www.chinastock.com.hk
