Chinese Beverage Giant Eastroc Suffers Tepid Debut in Hong Kong

By Jason Chau

Chinese beverage giant Eastroc's Hong Kong listing was met with a tepid response from investors, after it raised $1.3 billion in one of the biggest offerings in the city so far this year.

Eastroc Beverage Group's stock gained as much as 0.6% in early Tuesday trading from their offering price of 248.20 Hong Kong dollars, equivalent to US$31.78, before reversing course.

Shares were last trading 0.1% lower while Eastroc's Shanghai-listed shares were down 1.2%.

The listing had been highly anticipated as the company had received the backing of major global institutional investors including BlackRock funds, UBS, and subsidiaries of Temasek Holdings and Qatar's sovereign wealth fund.

The company also comes with strong brand recognition in China. According to its exchange filing, Eastroc is the country's largest maker of functional beverages including energy and sports drinks in sales volume terms since 2021, citing data from market research firm Frost & Sullivan. It also produces teas, coffees and juices, and is seeking to expand more actively beyond its core energy drinks business.

The firm plans to use the net proceeds to enhance its production capacity and supply chain, build its brand image and consumer engagement and expand overseas with potential investments and acquisitions, it said in a filing.

The muted response Eastroc received is a departure from recent listings, including Chinese food retailer Busy Ming, which surged on their debuts amid a fundraising boom in the city. Another consumer-staples major, Muyuan Food, is set to debut its shares in Hong Kong on Friday after raising up to US$1.4 billion in an offering.

Still, analysts are optimistic about the company's prospects.

"As the best proxy to China's fast-growing functional beverage industry, Eastroc remains as one of our top buys in China consumer sector in 2026," said Citi Research analysts Xiaopo Wei and Vincent Young in a note.

"Eastroc Beverage is one of China's leading functional-drink companies and is evolving into a diversified national beverage group," said CGS International analysts in recent note as well.

Write to Jason Chau at jason.chau@wsj.com

Revenue grew 34.13% and net profit rose 38.91% year-over-year for the first nine months of 2025, with strong gains in energy and electrolyte drinks and improved gross margin. Cash flow remained robust despite higher investments and expenses.

Original document: Eastroc Beverage (Group) Co. Ltd. Class A [605499] Interim report — Oct. 25 2025

Revenue and net profit grew over 36% year-over-year, driven by energy and electrolyte drinks, with strong regional and online sales growth. Gross margin improved, and major investments in production and digitalization support future expansion.

Original document: Eastroc Beverage (Group) Co. Ltd. Class A [605499] Interim report — Aug. 22 2025

Eastroc Beverage (Group) has an average rating of buy and mean price target of 285.41 yuan, according to analysts polled by FactSet.

Q1 2025 revenue rose 39% and net profit jumped 48% year-over-year, driven by strong energy and electrolyte drink sales and improved margins. Cash flow from operations declined due to higher bonuses and taxes.

Original document: Eastroc Beverage (Group) Co. Ltd. Class A [605499] Interim report — Apr. 16 2025

Eastroc Beverage Group's net profit attributable to shareholders in the first quarter jumped 48% year on year to 980 million yuan or 1.88 yuan per share, according to a Shanghai Stock Exchange disclosure on Saturday.

Attributable profit a year earlier was 663.9 million yuan or 1.28 yuan per share.

The Chinese beverage manufacturer's operating income climbed 39% to 4.85 billion yuan from 3.48 billion yuan the preceding year, the disclosure said.

The company's shares rose over 1% in recent trade.