NewTimeSpace | Category Dependence and Overseas Challenges Coexist: Eastroc Beverage (09980.HK) Share Price Falls Below IPO Level Despite Growth in Performance

As the first enterprise in China's energy drink industry to achieve an "A+H" dual listing, Eastroc Beverage (09980.HK) has faced a dichotomy since its debut on the Hong Kong Stock Exchange: stellar performance in 2025 contrasted with a share price that has fallen below its IPO level.

As of March 23, 2026, Eastroc Beverage closed at HK$208.40, a decline of nearly 16% from its IPO price of HK$248.

Stellar Performance Met with Capital Indifference: H-Shares Fall Nearly 16% Below IPO Price

Public information shows that Eastroc Beverage, founded in 1994, is an energy drink company that listed on the A-share market on May 27, 2021. According to the Frost & Sullivan report, Eastroc Beverage has ranked first in China's energy drink market in terms of sales volume for four consecutive years since 2021, with its market share growing from 15.0% in 2021 to 26.3% in 2024.

On February 3, 2026, Eastroc Beverage officially debuted on the Hong Kong Stock Exchange, becoming the first "A+H" dual-listed company in the domestic energy drink industry.

NewTimeSpace has learned that Eastroc Beverage priced its shares at HK$248 each, raising over HK$10.1 billion, marking the largest IPO in the soft drink sector of the Hong Kong stock market. Additionally, the company introduced 15 cornerstone investors, including the Qatar Investment Authority (QIA), Temasek, BlackRock, and Tencent, who collectively subscribed for $640 million, covering nearly half of the offering size.

Despite this massive lineup of cornerstone investors, the stock fell below its IPO price during intraday trading on its first day. After a slight rebound over the following two trading days, the share price has continued to slide amid volatility.

By the close of trading on March 23, 2026, Eastroc Beverage was quoted at HK$208.40, a daily decrease of 0.76%. Since its listing, the stock has dropped 15.97% from its IPO price of HK$248.

It is understood that prior to its official debut on the Hong Kong Stock Exchange, Eastroc Beverage released its 2025 earnings preview. Data shows that the company's 2025 revenue is expected to reach RMB 20.76 billion to RMB 21.12 billion, representing a year-on-year increase of 31.07% to 33.34%. Net profit attributable to the parent company is estimated at RMB 4.34 billion to RMB 4.59 billion, an increase of 30.46% to 37.97% year-on-year, with the net margin rising to 22.3%.

However, the record revenue of over RMB 20 billion in 2025 stands in sharp contrast to the cold reception from the capital market, characterized by shrinking market value and a share price falling below the IPO level. Eastroc Beverage's current performance is a stark reversal of the hype surrounding its listing.

Single Category Accounts for Over 70%; Intense Competition in Diversification

NewTimeSpace understands that Eastroc Beverage's performance growth is inseparable from its "1+6" product strategy and years of established channel advantages. As of September 2025, the company possessed over 3,200 distribution partners and 4.3 million terminal outlets, achieving 100% coverage of prefecture-level cities nationwide, with digital channels accounting for over 60%.

Furthermore, 10 of Eastroc Beverage's 14 major production bases are already in operation, with a total annual design capacity exceeding 4.8 million tons. Among these, the bases in Hainan and Kunming have become vital pillars supporting overseas expansion.

However, despite the "1+6" product strategy, the company's growth remains highly dependent on energy drinks. In 2025, Eastroc Super Drink accounted for 74.63% of total revenue. Aside from electrolyte water, other diversified categories have yet to achieve significant scale, leaving room for optimization of the growth structure.

NewTimeSpace has learned that the company’s core product may be facing pressure from hitting a growth ceiling. Data shows that from 2021 to the first three quarters of 2025, the revenue growth rate of Eastroc Super Drink declined continuously from 42.34% to 14.59%, showing a clear downward trend. In its core stronghold of Guangdong, third-quarter revenue in 2025 grew by only 2% year-on-year, indicating channel saturation.

Additionally, the six major categories Eastroc Beverage has expanded into—including electrolyte water, coffee, and sugar-free tea—are all "red ocean" markets crowded with giants. In the electrolyte water track, Genki Forest's "Alienergy" and Nongfu Spring's "Scream" firmly hold the advantage in professional sports scenarios.

Meanwhile, the ready-to-drink coffee and tea beverage markets are dominated by giants such as Nestlé, Starbucks, Master Kong, and Uni-President. Eastroc's related products currently act more as "followers" in these spaces.

Under the company’s "1+6" product strategy, although performance has grown, the core brand faces growth pressure and the diversified tracks encounter fierce competition. These new categories are unlikely to become major growth drivers in the short term, which may have sparked concerns in the capital market regarding the company's long-term growth potential.

Low Overseas Market Share; Global Strategy Awaits Verification

Following its successful IPO on the Hong Kong stock market in 2026, Eastroc Beverage raised net proceeds of approximately HK$10 billion, which it plans to primarily use for overseas supply chain construction, channel development, and brand promotion.

NewTimeSpace has learned that Eastroc Beverage has already exported to 25 countries and regions and plans to establish production bases in Hainan and Indonesia to radiate into the Southeast Asian market. By leveraging the international platform of its Hong Kong listing, the company may enhance its brand recognition in international capital markets, providing financing and brand support for overseas expansion.

On January 30, 2026, Eastroc Beverage officially signed a strategic cooperation agreement with the Indonesian Chinese business giant Salim Group. This marks a shift in its overseas layout from product export to a stage of deep localization in supply chains and channels.

However, to date, its primary competitor Red Bull still dominates the Southeast Asian energy drink market, with a long-standing market share of over 50%, whereas Eastroc Beverage holds less than 5% while also facing competitive pressure from local brands.

Financial data shows that in the first half of 2025, Eastroc Beverage's overseas revenue was only RMB 10.685 million, accounting for just 0.1% of total revenue and representing a decline from the same period in 2024. This indicates that the current contribution of its international business is limited.

Huachuang Securities pointed out in a report that the company's relative prosperity remains prominent, and the pullback offers a good opportunity for strategic positioning. Whether the "compounded experience" advantage in the Southeast Asian market can be transformed into sustainable overseas growth will ultimately determine the realization of Eastroc Beverage's long-term investment value.

For now, although the H-share listing and the entry into Southeast Asia represent a critical step in the company's internationalization strategy, whether Eastroc Beverage can successfully break through remains to be further verified by the market.

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