China Merchants Securities International has released a research report stating that it has lowered the price target for Eastroc Beverage (09980) from HK$130 to HK$101, a reduction of 22.3%, and downgraded its rating from "Accumulate" to "Neutral."

The firm has cut its earnings forecasts for the company for 2026 and 2027 by 12%, and lowered its revenue projections by an average of approximately 14%. The adjusted forecasts are largely in line with market consensus.

The firm noted that unfavorable weather conditions and hedging-related foreign exchange losses weighed on Eastroc Beverage's third-quarter performance.

The company's third-quarter net profit came in at RMB 1.28 billion, representing a year-on-year decline of 7.8%, falling short of expectations. Core energy drink revenue dropped 9%.

China Merchants Securities International believes that the market has already priced in the company's 2027 recovery expectations in advance, and therefore has lowered its investment rating on the stock.