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

<ul>
<li>Eastroc Beverage Group (9980 HK) is getting ready to complete its IPO in Hong Kong next week. The company is selling 40.9 million shares for HK$248 each </li>
<li>The company plans to raise up to HK$10.1 billion (US$1.3 billion). This would suggest a market cap of about US$21 billion.</li>
<li>Eastroc Beverage is one of the largest functional beverage companies in China and the dominant domestic energy drink producer, with its Eastroc Special Drink product having displaced Red Bull product.</li>
</ul>


Eastroc Beverage Group (9980 HK) is getting ready to complete its IPO in Hong Kong next week. The company is selling 40.9 million shares for HK$248 each 
The company plans to raise up to HK$10.1 billion (US$1.3 billion). This would suggest a market cap of about US$21 billion.
Eastroc Beverage is one of the largest functional beverage companies in China and the dominant domestic energy drink producer, with its Eastroc Special Drink product having displaced Red Bull product.


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

Eastroc Beverage (Group) Co. Ltd. is a Chinese beverage company specializing in the research, development, production, and sale of a diverse range of healthy drinks. Its product portfolio includes energy drinks (e.g., Eastroc Super Drink), electrolyte drinks (e.g., Eastroc Water Boost), various tea-based beverages, coffee drinks, plant-based protein drinks, fruit and vegetable juices, and cocktails. The company is headquartered in Shenzhen, Guangdong, China, and was founded in 1987.

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Eastroc Beverage (9980 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

Eastroc Beverage Hong Kong IPO Preview

Eastroc Beverage is getting ready to complete its IPO in Hong Kong next week. The company is selling 40.9 million shares for HK$248 each, which...

Douglas Kim