# Eastroc Beverage Group (605499.SHG)

Canonical: https://gigainvestors.com/s/605499.SHG

Analysis as of: 2026-10-16T07:35:29.479Z. Financial observations: FY2017–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 113.95 per share; close as of 2026-10-15.

Estimated value: low CNY 88.21 per share, central CNY 96.52 per share, high CNY 107.59 per share. Buy at or below the central value CNY 96.52 per share. Valuation as of 2026-10-16T07:35:29.479Z; scenarios are not confidence intervals.

Expected annual return: 8.5% at the stated quote. About 8.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 9 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.26×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.14×

- FY2018: 0.09×

- FY2019: 0.18×

- FY2020: 0.21×

- FY2021: 0.22×

- FY2022: 0.22×

- FY2023: 0.23×

- FY2024: 0.26×

- FY2025: 0.25×

### moat: pass

- ROIC, median of available years: 61.2%

- ROIC, second-lowest year: 32.5%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 44.7%

- Recent gross margin (lower of latest and 3-year median): 44.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 10.9%

- ROIC including acquisitions, ten-year median: 45.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 50.1%

- FY2018: 22.7%

- FY2019: 61.2%

- FY2020: 74.5%

- FY2021: 32.5%

- FY2022: 34.8%

- FY2023: 87.5%

- FY2024: 88.9%

- FY2025: 91.8%

### economics: pass

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 12B

- Net income, five-year total: CNY 12B

- Return on incremental invested capital: 69.0%

- Working capital / revenue, annual change: 0.1 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.98×

- FY2022: 0.96×

- FY2023: 0.99×

- FY2024: 0.99×

- FY2025: 0.93×

### management: pass

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 50.1% vs 88.9%

- Per-share earnings: 0.85 to 4.92 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 13.4%

- Diluted shares, 5-year annual growth: 13.4%

- Per-share value growth: 34.0%

- Per-share value change: CNY 4.07

- Per-share value, starting three-year median: CNY 0.85

- Per-share value, ending three-year median: CNY 4.92

- Average buyback yield: 4.8%

- Buyback history: 1 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: 50.1%

- ROIC, last three-year median: 88.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: CNY 0.85

- FY2018: CNY 0.62

- FY2019: CNY 1.43

- FY2020: CNY 2.26

- FY2021: CNY 3.31

- FY2022: CNY 2.13

- FY2023: CNY 3.02

- FY2024: CNY 4.92

- FY2025: CNY 6.53

### accounting: pass

- Sloan accruals: -6.6%

- Receivables to sales index (DSRI): 0.63×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.40×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.11×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 5.2%

- FY2018: 1.0%

- FY2019: -19.2%

- FY2020: -12.1%

- FY2021: -11.3%

- FY2022: -4.9%

- FY2023: -8.4%

- FY2024: -10.9%

- FY2025: -6.6%

## Holders

## Price story

Down 54% since May 2025 · sales +31.8%

Story as of 2026-10-16T10:00:05.140Z; price observation 2026-10-15.

Price needs cash profits to grow 3.7% a year for ten years

### Sales · FY2024–2025

sales +31.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: CNY 2.8B 

- FY2018: CNY 3.0B 

- FY2019: CNY 4.2B 

- FY2020: CNY 5.0B 

- FY2021: CNY 7.0B 

- FY2022: CNY 8.5B 

- FY2023: CNY 11B 

- FY2024: CNY 16B 

- FY2025: CNY 21B 

### Gross margin · FY2025

gross margin 44.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 47.9% 

- FY2018: 45.9% 

- FY2019: 46.6% 

- FY2020: 43.7% 

- FY2021: 44.3% 

- FY2022: 42.2% 

- FY2023: 43.0% 

- FY2024: 44.7% 

- FY2025: 44.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in beverages non-alcoholic; annual sales are CNY 20.9 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); FY2025: revenue 20875273117.52; grossProfit 9374048414.65; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 605499.SHG: Eastroc Beverage (Group) Co., Ltd. engages in the manufacturing and distribution of beverages in the People's Republic of China. The company offers energy, sports, tea, coffee, plant-based protein, electrolytes, and fruit and vegetable juice beverages. It also provides eastroc beverages, including eastroc ewater, eastroc coffee master, eastroc tea, eastroc milk tea, eastroc roasted good tea, and eastroc coco island. In addition, the company engages in international trade business, as well as provision of supply chain management services. It primarily exports its products to the United States, South Korea, Malaysia, Vietnam, and Indonesia. The company was formerly known as Shenzhen Eastroc Beverage Industry Co., Ltd. and changed its name to Eastroc Beverage (Group) Co., Ltd. in March 2018. The company was incorporated in 1994 and is based in Shenzhen, China.

### Why customers stay

Margins ranged from 43% to 44.9% during 2023–25; it earns 61.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); FY2023: grossProfit / revenue = 43%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); FY2024: grossProfit / revenue = 44.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); FY2025: grossProfit / revenue = 44.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); 9-year return on capital observations [[2017,0.5007815081132695],[2018,0.2266074646661872],[2019,0.6123772291581235],[2020,0.7449250495173885],[2021,0.32530472291392476],[2022,0.34840323371746945],[2023,0.8752941794325124],[2024,0.8892470481707336],[2025,0.9182252959540528]]; median 0.6123772291581235. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 38.1% of cash earnings on expansion; earns 69% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); FY2017: growth capex 0; upkeep 335431500; owner earnings 167837000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); FY2019: growth capex 377526311.94063497; upkeep 130741646.57936502; owner earnings 545357881.420635. Growth capex / owner earnings = 0.6922542513866204.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); FY2020: growth capex 251600685.57724917; upkeep 393768136.7027508; owner earnings 549896417.2972492. Growth capex / owner earnings = 0.45754196183686935.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); FY2021: growth capex 427444603.45000005; upkeep 182039388; owner earnings 1174096934.146. Growth capex / owner earnings = 0.36406244750218125.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); FY2022: growth capex 525687143.26839966; upkeep 267005328.61160034; owner earnings 1376962298.9003997. Growth capex / owner earnings = 0.38177308390229525.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); FY2023: growth capex 668032181; upkeep 249691448; owner earnings 2020695529.46. Growth capex / owner earnings = 0.33059516946549655.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); FY2024: growth capex 1351884141; upkeep 335596573; owner earnings 3309617975.524. Growth capex / owner earnings = 0.4084713556059173.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); FY2025: growth capex 1568658389.4982955; upkeep 700499580.4817045; owner earnings 4112629141.0922956. Growth capex / owner earnings = 0.3814247129226116.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); Incremental return on capital 0.6901531220112368, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); Dividend observations: [[2017,38927700],[2018,67877543.87],[2019,150923641],[2020,556381903],[2021,600015000],[2022,600015000],[2023,811027574],[2024,2051247908],[2025,2677991860.78]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 69% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 605499.SHG SharesStats.PercentInsiders = 69.024 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 3.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:29.479Z); Ten-year compound average after fade. Initial solved rate 0.04042663393948287. Price 113.95; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2021-06: CNY 148.40 per share

- 2021-07: CNY 115.69 per share

- 2021-08: CNY 101.88 per share

- 2021-09: CNY 119.41 per share

- 2021-10: CNY 104.80 per share

- 2021-11: CNY 109.60 per share

- 2021-12: CNY 107.60 per share

- 2022-01: CNY 93.23 per share

- 2022-02: CNY 101.78 per share

- 2022-03: CNY 79.31 per share

- 2022-04: CNY 73.14 per share

- 2022-05: CNY 85.53 per share

- 2022-06: CNY 101.10 per share

- 2022-07: CNY 90.57 per share

- 2022-08: CNY 90.11 per share

- 2022-09: CNY 83.95 per share

- 2022-10: CNY 91.72 per share

- 2022-11: CNY 101.18 per share

- 2022-12: CNY 105.27 per share

- 2023-01: CNY 105.28 per share

- 2023-02: CNY 121.28 per share

- 2023-03: CNY 113.85 per share

- 2023-04: CNY 105.60 per share

- 2023-05: CNY 93.84 per share

- 2023-06: CNY 102.31 per share

- 2023-07: CNY 108.61 per share

- 2023-08: CNY 116.15 per share

- 2023-09: CNY 108.21 per share

- 2023-10: CNY 113.64 per share

- 2023-11: CNY 116.66 per share

- 2023-12: CNY 107.99 per share

- 2024-01: CNY 96.25 per share

- 2024-02: CNY 105.91 per share

- 2024-03: CNY 110.49 per share

- 2024-04: CNY 125.96 per share

- 2024-05: CNY 126.61 per share

- 2024-06: CNY 127.66 per share

- 2024-07: CNY 138.15 per share

- 2024-08: CNY 134.88 per share

- 2024-09: CNY 160.34 per share

- 2024-10: CNY 163.21 per share

- 2024-11: CNY 164.48 per share

- 2024-12: CNY 191.17 per share

- 2025-01: CNY 187.04 per share

- 2025-02: CNY 170.18 per share

- 2025-03: CNY 191.52 per share

- 2025-04: CNY 220.00 per share

- 2025-05: CNY 246.15 per share

- 2025-06: CNY 241.58 per share

- 2025-07: CNY 216.38 per share

- 2025-08: CNY 237.65 per share

- 2025-09: CNY 233.69 per share

- 2025-10: CNY 215.38 per share

- 2025-11: CNY 202.82 per share

- 2025-12: CNY 205.68 per share

- 2026-01: CNY 192.42 per share

- 2026-02: CNY 185.82 per share

- 2026-03: CNY 157.90 per share

- 2026-04: CNY 156.80 per share

- 2026-05: CNY 142.44 per share

- 2026-06: CNY 123.43 per share

- 2026-07: CNY 135.90 per share

- 2026-08: CNY 119.98 per share

- 2026-09: CNY 112.25 per share

- 2026-10: CNY 112.49 per share

## Annual estimated value (CNY per share)

- FY2021: low CNY 26.78 per share, central CNY 30.02 per share, high CNY 34.34 per share

- FY2022: low CNY 23.77 per share, central CNY 26.23 per share, high CNY 29.50 per share

- FY2023: low CNY 39.94 per share, central CNY 44.01 per share, high CNY 49.42 per share

- FY2024: low CNY 58.23 per share, central CNY 64.17 per share, high CNY 72.08 per share

- FY2025: low CNY 77.67 per share, central CNY 86.02 per share, high CNY 97.14 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:15.219Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.