Investment Rating - The investment rating for the company is "Buy" [5] Core Insights - The company reported Q3 2025 revenue of 4.2 billion HKD, a year-on-year increase of 27.2%, achieving a historical high for quarterly revenue, while profit was 317 million HKD, down 16.4% [1] - The company announced a new stock incentive plan, granting stock options and reward shares to employees, indicating ongoing commitment to employee motivation [1] - HNB product shipments have significantly increased, with positive feedback on the Glo Hilo product in Japan, and plans for expansion into European markets [2] - The ODM business has shown growth due to increased compliance orders, while the self-branded products have successfully iterated flagship offerings and improved local marketing efforts [3] - The company is expected to benefit from the regulatory crackdown on illegal products in the vaping industry, leading to a recovery in the market [4] Financial Summary - The company is projected to achieve revenues of 141.75 billion HKD, 166.89 billion HKD, and 194.95 billion HKD for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 20.14%, 17.73%, and 16.81% [4][11] - The net profit attributable to the parent company is expected to be 10.80 billion HKD, 19.34 billion HKD, and 26.52 billion HKD for the same years, with growth rates of -17.15%, 79.13%, and 37.10% [4][11] - The current market capitalization is approximately 96.43 billion HKD, with a closing price of 15.57 HKD per share [5]

Core Insights - Smoore International reported its Q1-3 2025 financial data, with revenue of 10.21 billion yuan, a year-on-year increase of 21.8%, and a net profit of 1.131 billion yuan, a year-on-year decrease of 14.6% [1] - Q3 revenue showed rapid growth at 4.197 billion yuan, a year-on-year increase of 27.2% and a quarter-on-quarter increase of 27.5%, while net profit was 317 million yuan, a year-on-year decrease of 16.4% [1][2] - The adjusted net profit for Q3 was 444 million yuan, a year-on-year increase of 4.0%, with an adjusted net profit margin of 10.6%, down 2.4 percentage points year-on-year due to a decline in gross margin from product mix changes [1] Business Performance - The vaping electronic business is recovering, with self-owned brands achieving steady growth due to successful product iterations and localized marketing [1] - The OEM business is experiencing rapid growth, aided by increased enforcement against illegal products in the U.S. and the introduction of new products in Europe following a temporary ban [1] HNB Product Development - The company launched the HNB product glo Hilo in Japan in September, receiving positive feedback, and plans to enter Poland and Italy soon [2] - The company is developing an HNB technology platform to promote multi-technology research and development, actively expanding new products and customers [2] Profit Forecast and Investment Rating - Smoore International is positioned as a global leader in vaping technology, benefiting from stricter regulations in Europe and the U.S. and the exclusive partnership with British American Tobacco for HNB products [2] - The company maintains its profit forecast, expecting net profits of 1.33 billion, 2.22 billion, and 2.89 billion yuan for 2025-2027, corresponding to PE ratios of 67, 40, and 31 times, respectively, and maintains a "Buy" rating [2]

Core Viewpoint - The company's performance in Q3 2025 aligns with expectations, showing a revenue increase but a decline in net profit due to stock incentive expenses and ongoing high R&D investments [1][2]. Financial Performance - Revenue for the first three quarters of 2025 reached 10.21 billion yuan, a year-on-year increase of 21.8% - Net profit attributable to shareholders was 810 million yuan, a year-on-year decrease of 23.8% - Adjusted net profit after stock incentive expenses was 1.18 billion yuan, a slight increase of 0.1% [1]. Development Trends - Glo Hilo is expanding steadily in Japan and Poland, with positive sales momentum in the European vaping market - The company expects to see growth in revenue from HNB products and compliant vaping products in Europe, despite regulatory challenges in the U.S. [1][2]. Short-term Profitability and R&D - Short-term profitability may be slightly pressured due to increased orders from small clients in Europe and initial sales of HNB heating devices - The company is increasing R&D investments in vaping medical and HNB new businesses, which may impact net profit in Q3 2025 [2]. Long-term Growth Prospects - The company anticipates accelerated global expansion of Glo Hilo by 2026, which is expected to drive revenue growth - The vaping medical segment is expected to commercialize, opening up long-term growth opportunities [2]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders in 2025 has been reduced by 20% to 1.05 billion yuan, while the 2026 forecast has been increased by 11% to 1.88 billion yuan - The current stock price corresponds to a 47 times P/E ratio for 2026, with a target price maintaining a 69 times P/E ratio, indicating a potential upside of 46% [2].

Core Viewpoint - The company reported a significant increase in revenue for Q1-Q3 2025, but net profit showed a decline, indicating mixed financial performance amidst growth in specific business segments [1][2]. Financial Performance - For Q1-Q3 2025, the company achieved revenue of 10.21 billion yuan, a year-on-year increase of 21.8%, while net profit was 809 million yuan, a year-on-year decrease of 23.8% [1]. - In Q3 2025, the company recorded revenue of 4.197 billion yuan, a quarter-on-quarter increase of 27.5% and a year-on-year increase of 27.2%. Net profit for the same period was 317 million yuan, a quarter-on-quarter increase of 5.7% but a year-on-year decrease of 16.4% [1]. Business Segments - The heated tobacco and electronic vaporization businesses both experienced growth in Q3 2025, contributing to the record quarterly revenue [1]. - The company supported strategic clients in launching new heated tobacco products globally, leading to a significant increase in product shipments [1]. - The company also enhanced its localized operations and marketing efforts, which helped expand its consumer base and market share [1]. Product Development - BAT announced the launch of the gloHilo product line in Japan, Italy, Poland, and Serbia, aiming to reach 50 million adult consumers of smoke-free products by 2030 [2]. - The gloHiloPlus is the first two-piece heated product from the glo brand, featuring advanced heating technology and a mobile app for personalized settings [2]. Regulatory Developments - TranspireBio, a subsidiary of the company, successfully submitted an ANDA for Breo Ellipta, which, if approved, would grant the company a 180-day market exclusivity in the U.S. [2]. - Breo Ellipta is projected to generate sales of 2.02 billion USD in the U.S. in 2024, highlighting the potential impact of this regulatory milestone on the company's market position [2]. Profit Forecast and Investment Outlook - The company is expected to see significant contributions from its HNB business starting in 2026, with adjusted net profit forecasts for 2025-2027 set at 1.392 billion, 2.023 billion, and 2.759 billion yuan respectively [3]. - The company maintains a "buy" rating based on its technological and market leadership advantages [3].

Core Viewpoint - Smoore International (06969) announced the grant of a total of 540,000 award shares to 10 eligible participants under the revised share award plan, pending acceptance by the grantees [1] Group 1 - The company is set to issue 540,000 award shares [1] - The grant involves 10 eligible participants [1] - The issuance is contingent upon acceptance by the grantees [1]

Group 1 - The core point of the article is that Smoore International (06969) announced the grant of a total of 540,000 share awards to 10 eligible participants under the revised share award plan, pending acceptance by the grantees [1]

Group 1 - The core point of the article is that Smoore International (06969.HK) announced the grant of a total of 1.18 million stock options to 9 eligible participants as part of its revised stock option plan approved by shareholders on February 18, 2025 [1] Group 2 - The stock options will be granted on October 15, 2025, indicating a future commitment to incentivize key personnel within the company [1]

Core Viewpoint - Smoore International (06969.HK) announced the grant of a total of 540,000 award shares to 10 eligible participants under the revised share award plan, pending acceptance by the participants [1] Group 1 - The company will issue the shares on October 15, 2025 [1] - The grant is subject to acceptance by the participants [1]

Group 1 - The company, Smoore International (06969), announced the grant of a total of 1.18 million stock options to 9 eligible participants on October 15, 2025 [1] - The exercise price for the stock options is set at HKD 15.72 per share [1]

Group 1 - The company Smoore International (06969) announced the grant of a total of 1.18 million stock options to 9 eligible participants on October 15, 2025 [1] - The exercise price for the stock options is set at HKD 15.72 per share [1]