Eastroc Beverage (605499.SS): Worst Likely Behind; Valuation Mispriced; Maintain Buy

In Citi's view, Eastroc is the most mis-priced China staple stock in its coverage: the market has priced it as an ex-growth staple like Tingyi in valuation while aggressively expecting 10%+ topline growth. Citi believes the transient financial impact in 2026 amid the transition from a single-category F&B company into a multi-category platform has been misunderstood as a structural exit of growth. Management's positive narratives (sequentially improved retail sell-through in Oct vs 3Q, patience to keep 4Q channel inventories low, more organized penetration into snack specialty chains) and possible upsizing of cash return in 2027E suggest the worst is over;