HK Stock Market Move | Eastroc Beverage (09980) fell nearly 4% to a new low, with major banks lowering the company's target price and profit forecasts in recent days.

Eastroc Beverage (09980) fell nearly 4%, touching a new low of 105.5 Hong Kong dollars during the day. As of the time of writing, it has fallen by 3.73% to 105.7 Hong Kong dollars, with a turnover of 30.01 million Hong Kong dollars. On the news front, a Morgan Stanley research report pointed out that the target price of Eastroc Beverage was lowered from 227 Hong Kong dollars to 195 Hong Kong dollars. The "overweight" rating was maintained, with a 13% reduction in profit forecast for 2026 to reflect recent weak demand, unfavorable weather, intensified competition, and exchange losses due to renminbi appreciation. Profit forecasts for 2027 and 2028 were respectively lowered by 14% and 13%. Morgan Stanley also noted that demand for Eastroc Beverage's energy drinks in the second quarter was weaker than expected, but the electrolyte hydration brand "Bushui La" is expected to see increased shipments following capacity adjustments, with other beverages maintaining strong growth momentum. Citigroup also stated that the sales turnover rate of Eastroc Beverage slowed in the second quarter, mainly due to unfavorable weather and intensified competition, leading to a deceleration in the growth of energy drinks and other beverages. Accordingly, profit forecasts for 2026 and 2027 were reduced by 10% and 15% respectively, with sales forecasts for each year decreased by 7% and 12%. The target price for H shares was significantly reduced from 310.8 Hong Kong dollars to 161.7 Hong Kong dollars.