HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Eastroc Beverage / Equity Capital Markets

<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

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Monster Beverage Company presented a robust financial performance in the second quarter of 2025, achieving a historic milestone by surpassing $2 billion in quarterly net sales for the first time.</li><li>Net sales amounted to $2.11 billion, marking an 11.1% increase compared to the same quarter in 2024.</li><li>This growth was driven by the continued expansion of the global energy drink market, which revealed strong activity across various regions - notably the United States, EMEA, and APAC.</li></ul>

Monster Beverage Company presented a robust financial performance in the second quarter of 2025, achieving a historic milestone by surpassing $2 billion in quarterly net sales for the first time.Net sales amounted to $2.11 billion, marking an 11.1% increase compared to the same quarter in 2024.This growth was driven by the continued expansion of the global energy drink market, which revealed strong activity across various regions - notably the United States, EMEA, and APAC.

Monster Beverage: Will Its Formula 1 Sponsorship Provide A Near-Term Revenue Boost?

<ul><li>Monster Beverage Corporation's latest financial results reveal both strengths and challenges.</li><li>In the first quarter of 2025, the company experienced a 2.3% decline in net sales to $1.85 billion compared to the previous year.</li><li>This was driven by challenging bottler distributor ordering patterns in the U.S. and EMEA, as well as adverse foreign exchange fluctuations, with currency shifts reducing net sales by $57.3 million.</li></ul>

Monster Beverage Corporation's latest financial results reveal both strengths and challenges.In the first quarter of 2025, the company experienced a 2.3% decline in net sales to $1.85 billion compared to the previous year.This was driven by challenging bottler distributor ordering patterns in the U.S. and EMEA, as well as adverse foreign exchange fluctuations, with currency shifts reducing net sales by $57.3 million.

Monster Beverage: Supply Chain Disruptions

<ul><li>Monster Beverage Company's recent quarterly and full-year earnings provide insight into both the strengths and challenges faced by the company in a dynamic and competitive market.</li><li>The company reported record quarterly net sales of $1.81 billion, reflecting a 4.7% increase over the prior year, or 7.8% on a foreign currency-adjusted basis.</li><li>This growth was fueled by a strong performance in the global energy drink market, with particular strength in regions like EMEA and Asia-Pacific, where growth rates reached double digits.</li></ul>

Monster Beverage Company's recent quarterly and full-year earnings provide insight into both the strengths and challenges faced by the company in a dynamic and competitive market.The company reported record quarterly net sales of $1.81 billion, reflecting a 4.7% increase over the prior year, or 7.8% on a foreign currency-adjusted basis.This growth was fueled by a strong performance in the global energy drink market, with particular strength in regions like EMEA and Asia-Pacific, where growth rates reached double digits.

Monster Beverage Corporation: An Insight Into Its Market Share Dynamics

<ul><li>The latest financial performance of Monster Beverage Company presents a complex picture of growth opportunities amid a landscape of challenges.</li><li>In the third quarter of 2024, the company achieved record net sales of $1.88 billion, marking a marginal increase of 1.3% from the previous year's same period.</li><li>On a currency-neutral basis, this growth was more pronounced at 4.7%.</li></ul>

The latest financial performance of Monster Beverage Company presents a complex picture of growth opportunities amid a landscape of challenges.In the third quarter of 2024, the company achieved record net sales of $1.88 billion, marking a marginal increase of 1.3% from the previous year's same period.On a currency-neutral basis, this growth was more pronounced at 4.7%.

Monster Beverage Corporation: Portfolio Diversification & Innovation As A Key Growth Catalyst! - Major Drivers

United States

Monster Beverage Corporation is a holding company based in Corona, California. The Company, through its consolidated subsidiaries, markets and distributes energy drinks worldwide.

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Monster Beverage (MNST US)

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

Monster Beverage: Will Its Formula 1 Sponsorship Provide A Near-Term Revenue Boost?

Monster Beverage Company presented a robust financial performance in the second quarter of 2025, achieving a historic milestone by surpassing $2...

Baptista Research

Monster Beverage: Supply Chain Disruptions

Monster Beverage Corporation's latest financial results reveal both strengths and challenges. In the first quarter of 2025, the company...

Baptista Research

Monster Beverage Corporation: Portfolio Diversification & Innovation As A Key Growth Catalyst! - Major Drivers

The latest financial performance of Monster Beverage Company presents a complex picture of growth opportunities amid a landscape of challenges. In...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

Monster Beverage: Will Its Formula 1 Sponsorship Provide A Near-Term Revenue Boost?

Monster Beverage Company presented a robust financial performance in the second quarter of 2025, achieving a historic milestone by surpassing $2...

Baptista Research

Monster Beverage: Supply Chain Disruptions

Monster Beverage Corporation's latest financial results reveal both strengths and challenges. In the first quarter of 2025, the company...

Baptista Research

Monster Beverage Corporation: An Insight Into Its Market Share Dynamics

Monster Beverage Company's recent quarterly and full-year earnings provide insight into both the strengths and challenges faced by the company in...

Baptista Research

Monster Beverage Corporation: Portfolio Diversification & Innovation As A Key Growth Catalyst! - Major Drivers

The latest financial performance of Monster Beverage Company presents a complex picture of growth opportunities amid a landscape of challenges. In...

Baptista Research

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...