Eastroc Beverage Hong Kong IPO Valuation Analysis

• 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.