After finding a strong audience for its stock among domestic investors, the functional beverage maker aims to offer its stock to global buyers as well
Key Takeaways:
- Eastroc has filed for a Hong Kong IPO to complement its existing Shanghai listing, reporting its profit surged 63% last year to 3.33 billion yuan
- The company has been China’s top functional beverage brand by sales for four consecutive years
Entrepreneur Zhong Shanshan’s rise to become China’s richest man on the back of his Nongfu Spring (9633.HK) bottled water empire awakened many to the huge potential of the country’s vast beverage market. Anyone doubting that need look no further than Coca Cola, Warren Buffett’s favorite stock, which has become an investor favorite on its wide stable of beverages, covering everything from soft drinks to healthier alternatives.
Another entrepreneur, Lin Muqin, may have sensed the market’s big potential when he entered a company formed more than three decades ago that would eventually become Eastroc Beverage (Group) Co. Ltd. (605499.SH), whose stock has more than quadrupled since listing in Shanghai in 2021. Now, the company is hoping to repeat that success by selling its shares to international investors in Hong Kong, touting its status as China’s leading functional beverage company. The deal could be quite large, reportedly raising $1 billion, according to media reports.
Soaring profits
According to its listing document filed earlier this month, Eastroc’s revenue grew from 8.5 billion yuan ($1.17 billion) in 2022 to 15.83 billion yuan in 2024, averaging 36.5% annual growth over that time. Its profit grew even faster, rising more than 40% annually from 1.44 billion yuan to 3.33 billion yuan over that period, with its gross margin ticking steadily upward from 41.6% to 44.1%.
The company has not only held the title of China’s largest functional beverage market for the last four years, but has consolidated its position by nearly doubling its market share from 15% in 2021 to 26.3% last year.
Functional beverages mainly cater to …
Full story available on Benzinga.com
After finding a strong audience for its stock among domestic investors, the functional beverage maker aims to offer its stock to global buyers as well
Key Takeaways:
- Eastroc has filed for a Hong Kong IPO to complement its existing Shanghai listing, reporting its profit surged 63% last year to 3.33 billion yuan
- The company has been China’s top functional beverage brand by sales for four consecutive years
Entrepreneur Zhong Shanshan’s rise to become China’s richest man on the back of his Nongfu Spring (9633.HK) bottled water empire awakened many to the huge potential of the country’s vast beverage market. Anyone doubting that need look no further than Coca Cola, Warren Buffett’s favorite stock, which has become an investor favorite on its wide stable of beverages, covering everything from soft drinks to healthier alternatives.
Another entrepreneur, Lin Muqin, may have sensed the market’s big potential when he entered a company formed more than three decades ago that would eventually become Eastroc Beverage (Group) Co. Ltd. (605499.SH), whose stock has more than quadrupled since listing in Shanghai in 2021. Now, the company is hoping to repeat that success by selling its shares to international investors in Hong Kong, touting its status as China’s leading functional beverage company. The deal could be quite large, reportedly raising $1 billion, according to media reports.
Soaring profits
According to its listing document filed earlier this month, Eastroc’s revenue grew from 8.5 billion yuan ($1.17 billion) in 2022 to 15.83 billion yuan in 2024, averaging 36.5% annual growth over that time. Its profit grew even faster, rising more than 40% annually from 1.44 billion yuan to 3.33 billion yuan over that period, with its gross margin ticking steadily upward from 41.6% to 44.1%.
The company has not only held the title of China’s largest functional beverage market for the last four years, but has consolidated its position by nearly doubling its market share from 15% in 2021 to 26.3% last year.
Functional beverages mainly cater to …
Full story available on Benzinga.com
After finding a strong audience for its stock among domestic investors, the functional beverage maker aims to offer its stock to global buyers as well
Key Takeaways:
Eastroc has filed for a Hong Kong IPO to complement its existing Shanghai listing, reporting its profit surged 63% last year to 3.33 billion yuan
The company has been China’s top functional beverage brand by sales for four consecutive years
Entrepreneur Zhong Shanshan’s rise to become China’s richest man on the back of his Nongfu Spring (9633.HK) bottled water empire awakened many to the huge potential of the country’s vast beverage market. Anyone doubting that need look no further than Coca Cola, Warren Buffett’s favorite stock, which has become an investor favorite on its wide stable of beverages, covering everything from soft drinks to healthier alternatives.
Another entrepreneur, Lin Muqin, may have sensed the market’s big potential when he entered a company formed more than three decades ago that would eventually become Eastroc Beverage (Group) Co. Ltd. (605499.SH), whose stock has more than quadrupled since listing in Shanghai in 2021. Now, the company is hoping to repeat that success by selling its shares to international investors in Hong Kong, touting its status as China’s leading functional beverage company. The deal could be quite large, reportedly raising $1 billion, according to media reports.
Soaring profits
According to its listing document filed earlier this month, Eastroc’s revenue grew from 8.5 billion yuan ($1.17 billion) in 2022 to 15.83 billion yuan in 2024, averaging 36.5% annual growth over that time. Its profit grew even faster, rising more than 40% annually from 1.44 billion yuan to 3.33 billion yuan over that period, with its gross margin ticking steadily upward from 41.6% to 44.1%.
The company has not only held the title of China’s largest functional beverage market for the last four years, but has consolidated its position by nearly doubling its market share from 15% in 2021 to 26.3% last year.
Functional beverages mainly cater to …Full story available on Benzinga.com Read MoreAsia, contributors, Equities, IPOs, Opinion, Equities, Asia, IPOs, Opinion, Benzinga IPOs
