Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

Eastroc Beverage / Equity Capital Markets

<ul>
<li>Our base case valuation of Eastroc Beverage Group is target market cap of HK$234.7 billion (US$30.1 billion). </li>
<li>This is 41% higher than the expected market cap of HK$166.4 billion at the high end of the IPO price range. Given the solid upside, we have a Positive View. </li>
<li>Our base case valuation is based on P/E of 29.6x our estimated net profit of RMB7.1 billion (2027E). Eastroc Beverage has higher sales growth rate and ROE than its comps.</li>
</ul>


Our base case valuation of Eastroc Beverage Group is target market cap of HK$234.7 billion (US$30.1 billion). 
This is 41% higher than the expected market cap of HK$166.4 billion at the high end of the IPO price range. Given the solid upside, we have a Positive View. 
Our base case valuation is based on P/E of 29.6x our estimated net profit of RMB7.1 billion (2027E). Eastroc Beverage has higher sales growth rate and ROE than its comps.


Eastroc Beverage Hong Kong IPO Valuation Analysis

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/muyuan-foodstuff-co-ltd-a" target="_blank" data-smartkarma-citation="entities:3705:1" rel="noopener">Muyuan Foodstuff Co Ltd A (002714 CH)</a> , a leader in the hog farming industry, aims to raise around US$1.4bn in its H-share listing.</li>
<li>MF is a leading pork company with over 30 years of expertise in the hog farming industry.</li>
<li>We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.</li>
</ul>



Muyuan Foodstuff Co Ltd A (002714 CH) , a leader in the hog farming industry, aims to raise around US$1.4bn in its H-share listing.
MF is a leading pork company with over 30 years of expertise in the hog farming industry.
We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.


Aequitas: Muyuan Foods A/H Listing - Decent Pricing, Weak Momentum

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>Chinese functional beverage giant <a href="https://www.smartkarma.com/entities/eastroc-beverage-group-co-ltd" target="_blank" data-smartkarma-citation="entities:34882:1" rel="noopener">Eastroc Beverage Group (605499 CH)</a>  has announced the terms for its HK offering and plans to raise around US$1.3bn.</li>
<li>The HK offer is priced at HK$248/share, which is at a 13% discount to the last closed price of A-shares as of 23rd January 2026.</li>
<li>Our valuation analysis suggests that H-shares are not a bargain, and we think the shares are priced fairly suggesting limited upside.</li>
</ul>


Chinese functional beverage giant Eastroc Beverage Group (605499 CH)  has announced the terms for its HK offering and plans to raise around US$1.3bn.
The HK offer is priced at HK$248/share, which is at a 13% discount to the last closed price of A-shares as of 23rd January 2026.
Our valuation analysis suggests that H-shares are not a bargain, and we think the shares are priced fairly suggesting limited upside.


Eastroc Beverage H-Share Listing: Not Really a Bargain

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/eastroc-beverage-group-co-ltd-f3283290-a611-4cb4-8857-93101786e283" target="_blank" data-smartkarma-citation="entities:45048:1" rel="noopener">Eastroc Beverage Group (9980 HK)</a> has a solid growth outlook with a 3-year EPS CAGR of 27.8%, given its leadership position in China's functional beverage market. </li>
<li>Its IPO price of HK$248 equals 20.4x FY26F PER. This is at 44% premium to the sector and 19% discount to <a href="https://www.smartkarma.com/entities/nongfu-spring-co-ltd" target="_blank" data-smartkarma-citation="entities:28955:1" rel="noopener">Nongfu Spring (9633 HK)</a>, which is justified. </li>
<li>The cap and the floor is 5% and 15% discount to the A-share, i.e. HK$239-265.1, implying a 7% upside and 4% downside. The IPO (11.2% discount) is fairly priced.</li>
</ul>



Eastroc Beverage Group (9980 HK) has a solid growth outlook with a 3-year EPS CAGR of 27.8%, given its leadership position in China's functional beverage market. 
Its IPO price of HK$248 equals 20.4x FY26F PER. This is at 44% premium to the sector and 19% discount to Nongfu Spring (9633 HK), which is justified. 
The cap and the floor is 5% and 15% discount to the A-share, i.e. HK$239-265.1, implying a 7% upside and 4% downside. The IPO (11.2% discount) is fairly priced.


Eastroc Beverage (9980 HK) IPO: Close to Fairly Priced

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>Eastroc Beverage Group launched its Hongkong IPO aiming to raise up to HK$ 10.1B. The company plans to sell 40.9M shares at HK$248 per share.</li>
<li>Eastroc Beverage is a functional beverage company in China, with primary focus on energy beverages and sports beverages. Company enjoyed 26.3% market share in 2024 (in terms of sales volume).</li>
<li>We would recommend the investors to subscribe to the issue backed by strong growth visibility and secular demand pure play.</li>
</ul>


Eastroc Beverage Group launched its Hongkong IPO aiming to raise up to HK$ 10.1B. The company plans to sell 40.9M shares at HK$248 per share.
Eastroc Beverage is a functional beverage company in China, with primary focus on energy beverages and sports beverages. Company enjoyed 26.3% market share in 2024 (in terms of sales volume).
We would recommend the investors to subscribe to the issue backed by strong growth visibility and secular demand pure play.


Eastroc Beverage A/H Listing: Growth Visibility Makes It Functional for Investors to Gulp It Down

China

China Resources Beverage is a professional ready-to-drink soft beverage company in China. It primarily manufactures and sells packaged water products, including bottled and barreled water under brands like C'estbon, and various other ready-to-drink soft beverages such as tea, juice, sports drinks, and coffee. The company is headquartered in Shenzhen, Guangdong, China, and was founded in 1984.

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China Resources Beverage (2460 HK)

Eastroc Beverage Hong Kong IPO Valuation Analysis

We have a Positive outlook on Eastroc Beverage Group HK IPO with a target market cap of HK$234.7 billion, 41% higher than expected, based on...

Douglas Kim

Aequitas: Muyuan Foods A/H Listing - Decent Pricing, Weak Momentum

Muyuan Foodstuff Co Ltd A (002714 CH) , a leader in the hog farming industry, aims to raise around US$1.4bn in its H-share listing. In this note,...

Sumeet Singh

Eastroc Beverage (9980 HK) IPO: Close to Fairly Priced

Eastroc has solid growth with a 3-year EPS CAGR of 27.8%, supported by leadership in China's functional beverage market. Its IPO is fairly priced...

Osbert Tang, CFA

Eastroc Beverage A/H Listing: Growth Visibility Makes It Functional for Investors to Gulp It Down

Eastroc Beverage Group launches Hong Kong IPO to raise up to HK$10.1B, focusing on energy and sports beverages with strong market share. Investors...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Eastroc Beverage Hong Kong IPO Valuation Analysis

We have a ​Positive outlook on Eastroc Beverage Group HK IPO with a target market cap of HK$234.7 billion, 41% higher than expected, based on...

Douglas Kim

Aequitas: Muyuan Foods A/H Listing - Decent Pricing, Weak Momentum

Muyuan Foodstuff Co Ltd A (002714 CH) , a leader in the hog farming industry, aims to raise around US$1.4bn in its H-share listing. In this note,...

Sumeet Singh

Eastroc Beverage H-Share Listing: Not Really a Bargain

​Chinese beverage giant Eastroc Beverage Group plans to raise $1.3bn in HK offering which is priced at a 13% discount to A-shares, our valuation...

Shifara Samsudeen, FCMA, CGMA

Eastroc Beverage (9980 HK) IPO: Close to Fairly Priced

​Eastroc has solid growth with a 3-year EPS CAGR of 27.8%, supported by leadership in China's functional beverage market. Its IPO is fairly priced...

Osbert Tang, CFA

Eastroc Beverage A/H Listing: Growth Visibility Makes It Functional for Investors to Gulp It Down

​Eastroc Beverage Group launches Hong Kong IPO to raise up to HK$10.1B, focusing on energy and sports beverages with strong market share. Investors...

Tina Banerjee

We have a Positive outlook on Eastroc Beverage Group HK IPO with a target market cap of HK$234.7 billion, 41% higher than expected, based on...

Chinese beverage giant Eastroc Beverage Group plans to raise $1.3bn in HK offering which is priced at a 13% discount to A-shares, our valuation...

Eastroc has solid growth with a 3-year EPS CAGR of 27.8%, supported by leadership in China's functional beverage market. Its IPO is fairly priced...

Eastroc Beverage Group launches Hong Kong IPO to raise up to HK$10.1B, focusing on energy and sports beverages with strong market share. Investors...