Eastroc Beverage Maintains 15%+ Full-Year Growth Guidance Despite Weather; 2H26 Cost Benefits Expected
Eastroc Beverage’s management maintained its full-year sales-growth guidance of more than 15% at an NDR group meeting, despite continued unfavorable weather in July.
Eastroc Beverage’s management maintained its full-year sales-growth guidance of more than 15% at an NDR group meeting, despite continued unfavorable weather in July. Sales at retail outlets had recovered to normal peak-season levels in the first week of August, particularly as weather improved in southern China. Growth in the first half of 2026 was approximately 16%.
For the second half of 2026, the company plans to deploy channel spending flexibly. It may reduce QR-code red-envelope incentives for other beverage categories while maintaining the level of incentives for its Boshuila brand. Investments in refrigerators and major FIFA marketing expenditures were brought forward into the first half of 2026, so second-half spending is expected to normalize sequentially. The company plans to add another 30,000 to 40,000 refrigerators and smart vending machines in the second half of 2026.
The note identifies Eastroc Beverage (605499.SS) as a beneficiary, along with the energy-drink, sugar-free tea and electrolyte-water segments. Goldman Sachs said the market has not fully priced in positive factors including the company’s significant outperformance across all categories and the recovery of retail sales to peak-season levels in August.
The catalysts identified in the note are: August and September sales data confirming the recovery of peak-season momentum; third-quarter 2026 results confirming acceleration in Boshuila, sequentially lower expenses and margin improvement; the impact of World Cup marketing featuring an endorsement by Mbappé; and progress in point-of-sale expansion, including more than 2.5 million Guozhicha outlets.
For the second half of 2026, the company plans to deploy channel spending flexibly. It may reduce QR-code red-envelope incentives for other beverage categories while maintaining the level of incentives for its Boshuila brand. Investments in refrigerators and major FIFA marketing expenditures were brought forward into the first half of 2026, so second-half spending is expected to normalize sequentially. The company plans to add another 30,000 to 40,000 refrigerators and smart vending machines in the second half of 2026.
The note identifies Eastroc Beverage (605499.SS) as a beneficiary, along with the energy-drink, sugar-free tea and electrolyte-water segments. Goldman Sachs said the market has not fully priced in positive factors including the company’s significant outperformance across all categories and the recovery of retail sales to peak-season levels in August.
The catalysts identified in the note are: August and September sales data confirming the recovery of peak-season momentum; third-quarter 2026 results confirming acceleration in Boshuila, sequentially lower expenses and margin improvement; the impact of World Cup marketing featuring an endorsement by Mbappé; and progress in point-of-sale expansion, including more than 2.5 million Guozhicha outlets.