Shares of Eastroc Beverage (Group) Co., Ltd. (HKG: 09980) tumbled nearly 6% during the session, hitting a new all-time low of HK$108.2. At the time of writing, the stock was down 5.3% at HK$108.9, with a turnover of HK$93.30 million.

Analyst Downgrades and Revised Forecasts

The decline follows a recent research report from Citi, which highlighted a slowdown in the company's second-quarter sales destocking rate. This was attributed primarily to unfavorable weather conditions and heightened competition, leading to decelerating growth in the energy drink and other beverage segments. Consequently, Citi has reduced its profit forecasts for 2026 and 2027 by 10% and 15%, respectively, and lowered its sales forecasts for those years by 7% and 12%. The firm's H-share price target has been significantly cut from HK$310.8 to HK$161.7.

Mixed Performance Outlook

Morgan Stanley also weighed in, noting that demand for Eastroc's energy drinks in Q2 was weaker than anticipated. However, the investment bank expects shipments for its electrolyte hydration brand, "Drink Up," to show quarter-on-quarter improvement following capacity adjustments, while other beverage categories are projected to maintain strong growth momentum. Morgan Stanley currently forecasts first-half sales and profit growth of approximately 16%, with full-year growth expected around 15% for both metrics. The firm has lowered its 2026 profit forecast for Eastroc by 13% to reflect recent weak demand, adverse weather, increased competition, and foreign exchange losses from a stronger Renminbi. Profit forecasts for 2027 and 2028 have been reduced by 14% and 13%, respectively.